Investor Sentiment Picking up
Korea Exchange announced on Dec. 19 that the total net assets of the 445 exchange traded funds (ETFs) available in South Korea hit an all-time high of 48,908.8 billion won on Dec. 17. The total net assets more than doubled from 19 trillion won to 41 trillion won from 2014 to 2018 and broke the 45 trillion won mark in January and November this year.
The first ETF in South Korea made its debut in 2002. The ongoing increase in the net assets implies a recovery in investor sentiment. The United States and China recently wrapped up the first phase of their trade negotiations to result in an increasing preference for risky assets and rising stock prices. Under the circumstances, stock ETFs, which account for more than 80 percent of the South Korean ETF market, expanded their size.
The total net assets of the stock ETFs reached an all-time high of 41,083.2 billion won on Dec. 17. Previously, the net assets topped 39 trillion won for the first time in January this year but dropped to 31 trillion won in August.