Analysis: The rise of Korea’s ETF market is driving a “concentrated” investment trend, with capital accelerating into leading stocks

Odaily Planet Daily News: Samsung Securities released a report stating that the Korean ETF market is seeing a rise in a “concentrated” investment trend. ETFs that reduce the number of holdings and increase the weight of leading companies have become a new hotspot, and investors are inclined to concentrate their bets on core leading companies in each theme through ETFs. In the Korean market, “ultra-concentrated ETFs,” whose number of holdings has been compressed significantly, are experiencing rapid growth in both supply and demand. Traditional industry or theme ETFs typically hold 30 to 50 or more stocks, while ultra-concentrated ETFs remove back-row companies in areas such as semiconductors, robotics, and technology giants, focusing only on 1 to 2 core leading companies.

Data shows that, in the United States, equal-weight ETFs centered on the “Seven Giants,” such as MAGS, have outperformed the Nasdaq 100 Index and the S&P 500 Index, further boosting market confidence in concentrated ETFs. As of July 13, the SOL AI Semiconductors TOP2 Plus ETF has grown to 5.787 trillion won, making it the largest product among ETFs listed this year. The ACE K Semiconductors TOP2+ ETF and the 1Q K Semiconductors TOP2+ ETF have also reached 2914 billion won and 2455 billion won, respectively. (NATE)