ETF Market Dynamics and Changes: A Turning Point for Samsung Asset Management and the US ETF Market
Starting this July, the method of distribution for overseas equity-based Total Return (TR) ETFs will change, raising concerns over the attractiveness of TR products, which Samsung Asset Management has heavily focused on. This change is due to a government mandate requiring the distribution of interest and dividend income, potentially reducing the allure of these ETFs. Samsung had previously maintained its market share by offering low expenses on its KODEX U.S. S&P500TR and Nasdaq100TR. This shift is expected to narrow the market share gap between Samsung Asset Management and Mirae Asset Management.
There has been a significant capital outflow from small and mid-cap stocks and regional bank ETFs, which had initially risen following Trump's election. This phenomenon is occurring as the U.S. central bank adjusts the pace of interest rate reductions, influencing investment trends in the financial sector. While there is steady investment influx into large bank-focused Financial Select Sector ETFs, capital is withdrawing from 'SPDR S&P Regional Banking' ETFs. Additionally, the enthusiasm for software and semiconductor-related ETFs has waned, leading to more outflows.
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Samsung Asset Management Faces Dilemma with Ban on 'Overseas TR ETF'... Will Industry Leader Change? - E-DailyStarting in July, the operation of overseas stock-type total return (TR) exchange-traded funds (ETFs) will face restrictions, drawing attention to the impact on the asset management industry. With Samsung Asset Management, the market share leader in ETFs, potentially experiencing investor outflow from its TR-focused products, there is a possibility of shifting rankings. Samsung Asset Manag...