Trading
Despite the listing of new ETFs and brisk trading of KODEX China H, the asset under management of ETFs tracking key indices of KRX declined due to shrinking spot-futures basis and the daily trading value and trading volume also fell due to the decline of arbitrage trading.
Daily trading value was KRW 122.8 billion (decline of 10.4% from previous quarter) and daily trading volume was 6,219,000 shares (decline of 2,158,000 or 25.8% from the previous quarter).
* The top 5 ETFs account for 89.0% of total daily trading value.
Daily Trading of ETFs
(thou. KRW bil) | |||||
'09 Q3 | '09 Q2 | '09 Q1 | '08 | '07 | |
Trading volume | 6.219 | 8.377 | 9.301 | 3.846 | 2.333 |
Trading value | 123 | 137 | 127 | 98 | 33 |
With over KRW 2 billion of trading value, the daily trading values of 3 of 5 bond ETFs and inverse ETF were ranked from 6th to 9th.
ETF | Trading value (KRW bil) | |
1 | KODEX200 | 61.8 |
2 | KOSEF 200 | 24.2 |
3 | TIGER 2000 | 10.1 |
4 | TREX 200 | 8.0 |
5 | KINDEX 200 | 5.3 |
Rate of return
ETFs recorded a high return (around 42%) from the improved performance of bank and automobile shares.
* KOSPI rose 20.4% in the 3rd quarter of 2009.
As the price of semiconductor recovered, semiconductor sector ETF recorded over 30% absolute return during the 3rd quarter.(35.4% by TIGER SEMICON and 32.9% by KODEX SEMICON)
On the bullishness of large caps, KStar Top5 recorded over 25% return, thus becoming one of the top 10 in the rate of return.
Trading of newly listed ETFs
5 bond ETFs and 1 inverse ETF were listed in the 3rd quarter. They traded briskly with the daily trading value of over KRW 1 billion.
Daily trading value of inverse ETF was KRW 2.6 billion. However, considering the price per unit of inverse ETF is 1/10 ~ 1/5 of those of bond ETFs, it can be said that inverse ETF was traded most actively.
The brisk trading of inverse ETF is attributed to the investors who anticipate the market correction in the future as well as the vigorous placing of quotes by the liquidity provider.
Of the 6 newly listed ETFs, only inverse ETF recorded a positive return while all bond ETFs recorded small negative returns. Return rates of bond ETFs remained negative (-0.5~ 0.6%).
Size of ETFs
Net asset value of KRW 3.6777 trillion and total number of listed units of 225.67 million, showing an increase of KRW 1.5557 trillion (73.3%), and 20.73 million units (10.1%) from the previous quarter, respectively.
Net asset value increased due to the increase of ETF prices resulting from the rise of KOSPI value and the listing of 5 bond ETFs (KRW 1.211 trillion) and inverse ETF (KRW 30 billion).
Number of listed ETFs increased by 5 (6 new ETFs; delisting of 1 KOSEF large cap value ETF) and total of 43 ETFs are listed(10 market indices ETFs; 5 bond ETFs; 5 overseas indices ETFs; 10 sector ETFs; 4 style ETFs; 9 other ETFs) as of end of September.