Mirae Asset Global Investments Co.’s global equity-traded funds (ETFs) topped the 100 trillion won mark, for the first time in the South Korean asset management industry.
Mirae Asset said on Friday that a net value of ETFs operated worldwide totaled 102.2 trillion won ($86.1 billion) as of the end-2021, up more than 36 trillion won from the previous year. The net assets have soared nearly 20 times from 5.2 trillion won in 2011 when it started the global ETF business.
The total net value is higher than 74 trillion won in all ETFs listed in South Korea.
Mirae Asset is the world’s 14th largest ETF supplier, operating the funds in ten countries including South Korea, the US, Canada, Hong Kong and Japan. The number of ETFs it operates worldwide more than tripled to 396 as of the end-2021 from 93 in 2011.
SURGE WITH THEMED ETFS
Mirae Asset started the ETF business in 2006, later than its domestic competitors such as Samsung Asset Management Co., which entered the sector in 2002. But the latecomer rapidly expanded the business with various products such as themed ETS and overseas ETFs.
In 2011, Mirae Asset listed an ETF on the Hong Kong stock exchange for the first time among South Korean asset management companies. It also acquired Canada’s Horizons ETFs Management Inc., an active ETF powerhouse in the year.
The South Korean asset management company in 2018 took over Global X in the US, which accounts for about 70% of the global ETF market. Global X has been in the spotlight, issuing ETFs with various themes such as blockchain, technology development, population structure and infrastructure.
Global X is Mirae Asset’s largest unit, managing 51.9 trillion won as of the end-2021, more than six times of 8 trillion won in 2018.
TIGER ETF in South Korea followed Global X, managing 26.2 trillion won in 134 EFTs. TIGER ETF expanded its share to 35.5% in the country’s ETF market last year from 25.2%, attracting investors with ETFs specialized in overseas stocks.