Samsung Securities: Korea’s ETF market is seeing a rise in a “concentrated” investment trend, with funds accelerating into leading stocks

Deep Tide TechFlow news: On July 19, according to Korean media NATE, Samsung Securities released a report stating that the South Korean ETF market is seeing a rising “concentrated” investment trend. ETFs that reduce the number of holdings and increase the weight of leading companies have become a new focus. Investors tend to concentrate their ETF bets on the core leading companies in each theme. In the current South Korean market, the supply and demand for “ultra-concentrated ETFs,” whose number of holdings has been sharply compressed, are growing rapidly. While traditional industry or theme ETFs typically hold 30 to 50 or more stocks, ultra-concentrated ETFs remove back-rank companies in sectors such as semiconductors, robotics, and tech giants, focusing only on 1 to 2 core leading companies.

Data shows that, with the “seven giants” as the core, the equal-weight ETF MAGS has outperformed both the Nasdaq 100 index and the S&P 500 index, further boosting market confidence in concentrated ETFs. As of July 13, the SOL AI Semiconductor TOP2 Plus ETF reached a size of 5.787 quadrillion won, becoming the largest product among ETFs launched this year. The ACE K Semiconductor TOP2+ ETF and the 1Q K Semiconductor TOP2+ ETF also reached 291.4 trillion won and 245.5 trillion won, respectively.