The domestic ETF market share is expanding, with products surpassing 1 trillion won in net assets appearing frequently.

Domestic stock market surges significantly, and large products in the exchange-traded fund market are also rapidly increasing, with nearly 100 ETFs having net assets exceeding 1 trillion won.

According to data from financial information company FnGuide on the 13th, as of the close on May 11, there are a total of 96 ETFs with net assets over 1 trillion won. This accounts for 8.7% of all 1,099 ETFs. At the end of last year, among 1,058 ETFs, only 67 exceeded 1 trillion won, and in just a few months, 29 new ETFs entered the 1 trillion won range. The overall ETF market size has also expanded accordingly. Total net assets increased from 297 trillion won at the end of last year to 468 trillion won, an increase of 171 trillion won. This can be seen as the result of valuation increases driven by the stock market rally and the inflow of new funds occurring simultaneously.

The core of this change is domestic equity ETFs. Among the 96 ETFs exceeding 1 trillion won, the most are domestic equity ETFs, with 43, followed by overseas equity ETFs with 22. At the end of last year, the gap between domestic and overseas equity ETFs was not large, with 23 and 19 respectively. However, after entering this year, domestic equity ETFs increased by 20, while overseas equity ETFs only increased by 3. This is interpreted as a continued strong domestic stock market since last year further intensifying this year, leading investors’ funds to flow into representative domestic index and industry ETFs. In fact, the US S&P 500 index and Nasdaq index have risen 8.2% and 13% respectively as of May 11 this year, while the KOSPI index increased by 85% during the same period.

In terms of asset types, the ETF market’s scope has also further expanded. Besides domestic and overseas equity ETFs, among products with net assets over 1 trillion won, domestic bond ETFs number 15, and domestic hybrid ETFs holding both stocks and bonds number 5. Large and mid-sized ETFs have also increased significantly. The number of ETFs with net assets over 10k won increased from 125 at the end of last year to 183, an increase of 58; those over 3 trillion won increased from 20 to 28; those over 5 trillion won grew from 6 to 17; and those over 10 trillion won increased from 2 to 5. This indicates that ETFs are no longer just a market where funds are concentrated in a few representative products, but have entered a stage where investment demand is dispersed across multiple asset classes, with overall scale growing together.

In individual product rankings, the strong trend of the domestic stock market is also clearly visible. At the end of last year, the ETF with the highest net assets was TIGER US S&P 500, tracking the US S&P 500 index, with a size of 12.7013 trillion won. However, after entering this year, the size of KODEX 200, tracking the KOSPI 200, expanded to 25.8698 trillion won, surpassing the 17.3682 trillion won of TIGER US S&P 500, and rose to the top. Additionally, the TIGER Semiconductor TOP10 with 12.9047 trillion won, TIGER 200 with 10.5004 trillion won, and TIGER US Nasdaq 100 with 10.0026 trillion won are all listed among ETFs exceeding 10 trillion won. The prominence of representative domestic indices and semiconductor-related products at the top reflects how strong investors’ expectations for large-cap stocks and the information technology sector have been in recent stock market movements.

This trend may become more apparent in the short term as domestic stock market performance and investor fund flows continue. If the index continues to rise, the concentration around large ETFs may further intensify; conversely, if volatility increases, funds may flow into bond or hybrid products. Ultimately, the expansion of the ETF market size is no longer just about the increase in product numbers but also serves as an indicator of which markets and assets domestic investors are optimistic about, and its significance is becoming increasingly important.