First 'golden cross' recorded since ETFs were introduced in 2002
A prolonged Kosdaq slump has produced an unprecedented milestone: the total net assets of domestically listed exchange-traded funds have surpassed 500 trillion won ($324 billion), overtaking the Kosdaq's market cap for the first time — a so-called "golden cross." The development has deepened frustration among retail investors, who make up a disproportionately large share of the Kosdaq market.
According to the Korea Exchange and Yonhap News Agency, the combined net assets of domestic ETFs stood at 519.75 trillion won as of June 25, exceeding the Kosdaq's total market cap of 499.3 trillion won on the same day.
ETF net assets for June 26 had not yet been fully tallied, but the ETF market cap reached 502.46 trillion won that day — more than 20 trillion won above the Kosdaq market cap of 478.77 trillion won recorded on the same date.
Given that ETF net assets track closely with market cap, the ETF market is believed to have continued outpacing the Kosdaq on June 26 as well.
It marks the first time domestic ETF net assets have surpassed the Kosdaq since ETFs were introduced on the main bourse in October 2002.
The Kosdaq fell sharply on June 23, with its market cap tumbling from 543.8 trillion won the previous day to 500.94 trillion won.
ETF net assets also shrank during the same period, dropping from 532.97 trillion won to 501.39 trillion won, but held above the 500 trillion won threshold.
The Kosdaq briefly regained the lead on June 24, with its market cap climbing back to 511.24 trillion won, but ETF net assets pulled ahead again starting June 25.
The ETF market's rise above the Kosdaq reflects its rapid growth this year as ETFs have become a go-to investment vehicle for ordinary Koreans.
After closing last year below 300 trillion won at 297.27 trillion won, ETF net assets crossed the 300 trillion won mark in January, surpassed 400 trillion won in April and broke through the 500 trillion won level in May.
The Kosdaq's decline, by contrast, has been serious. Its market cap hit an all-time high of 679.55 trillion won on April 27, when it exceeded ETF net assets of 427.47 trillion won by more than 250 trillion won. Since then it has been on a downward trajectory — falling below 600 trillion won for the first time on May 20, and dropping below 500 trillion won as of June 25, when it stood at 499.3 trillion won.
sun@heraldcorp.com
