Domestic asset management firms are moving to target overseas markets, including exporting exchange-traded funds (ETFs). Their strategy is to leverage the know-how of managing successful ETFs in the domestic market to find new revenue sources abroad, either by launching ETFs that invest in Korean markets such as domestic stocks or by localizing and commercializing ETFs already launched domestically.
According to industry sources on the 29th, Hanwha Asset Management will list two ETFs on the Abu Dhabi Securities Exchange (ADX) on the 2nd of next month. This involves cross-listing the ETFs that Hanwha Asset Management listed on the New York Stock Exchange last year and this year.
Since last year, Hanwha Asset Management has been exporting ETFs incorporating the investment strategies and know-how of "PLUS ETF." The company utilizes a "white labeling" method in which it creates indices as an index provider that incorporate PLUS ETF's investment strategies and know-how, while local asset managers operate the ETFs.
In February last year, partnering with U.S.-based asset manager Exchange Traded Concepts (ETC), Hanwha Asset Management launched "KDEF" (ticker symbol) on the New York Stock Exchange. KDEF is an ETF based on "PLUS K Defense." In May of this year, it listed "KMCA," an ETF benchmarked against "PLUS K Manufacturing Core Companies Active," on the New York Stock Exchange.
Hanwha Asset Management plans to push for ETF listings on European stock exchanges, including London in the U.K. and Frankfurt in Germany, within the year.
Korea Investment Management Co., Ltd. launched an ETF on the Hong Kong Stock Exchange (HKEX) on the 23rd. The company collaborated with CUAM HK, the Hong Kong local subsidiary of China Universal Asset Management, to create an ETF investing in major semiconductor technology companies in China, Hong Kong, and globally.
Korea Investment Management also expects capital inflows from mainland Chinese investors through this ETF listing. Mainland Chinese investors can invest in ETFs listed in Hong Kong that meet certain criteria.
In addition, Korea Investment Management Co., Ltd. is currently operating ETFs locally through its subsidiaries in Vietnam and Indonesia. It also collaborated with U.S. asset manager AdvisorShares to launch an active ETF investing in the Korean market in the United States in 2016.
Samsung Asset Management listed five "Amplify Top 10" ETFs themed around quantum computing, space, robotics, Asian memory semiconductors, and global semiconductors on the New York Stock Exchange this year. Previously, Samsung Asset Management acquired a stake in U.S.-based Amplify in 2022, becoming its second-largest shareholder. Subsequently, it launched "SOF," which localized the strategy of the "KODEX U.S. Dollar SOFR Interest Rate Active (Synthetic)" ETF in 2023, and "TLTP," developed based on the "KODEX U.S. 30-Year Treasury Target Covered Call (Synthetic H)" in 2024. Samsung Active Asset Management also listed "USNG," which localized the strategy of the "KoAct U.S. Natural Gas Infrastructure Active" ETF.
Mirae Asset Global Investments was the first among asset management firms to move into overseas markets. It currently operates ETFs in 13 regions worldwide. It made its debut in overseas markets as the first domestic asset manager by listing an ETF on the Hong Kong Stock Exchange in 2011. Since then, it has acquired asset managers through mergers and acquisitions (M&A), starting with Canada's Horizon ETFs (now Global X Canada) in 2011, followed by "Global X" in the U.S. in 2018, and "ETF Securities" (now Global X Australia) in Australia in 2022.
KB Asset Management is also preparing for overseas ETF listings. In June last year, KB Asset Management signed a strategic memorandum of understanding (MOU) with China Asset Management (China AMC), the top asset manager for ETFs in China, to cooperate on ETF business. Through this, it plans to develop innovative investment products and collaborate on ETF listings in Korea and Hong Kong.
A Samsung Asset Management official said, "We are not resting on our achievements in the domestic market but are pioneering overseas markets to secure sustainable growth drivers and diversified revenue sources from a medium- to long-term perspective," adding, "We will expand our product development capabilities and management know-how, which have been proven domestically, to the global stage."
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