Samsung, Timefolio Launch Competing KOSDAQ Active ETFs

Competition among asset managers is heating up as active exchange-traded funds based on the KOSDAQ market launched simultaneously. As government policies to revitalize KOSDAQ converge with demand for growth sector investments, active strategies seeking excess returns beyond index tracking are emerging as a new investment alternative.

According to the Korea Exchange, Samsung Active Asset Management listed the "KoAct KOSDAQ Active ETF" while Timefolio Asset Management listed the "TIME KOSDAQ Active ETF" on the securities market on the 10th. This marks the first time that ETFs using the KOSDAQ index as a benchmark while employing active management strategies have debuted simultaneously.

The KoAct KOSDAQ Active ETF allocates 70-80% of its portfolio to high-growth companies, with the remaining 20-30% invested in value stocks that are undervalued relative to earnings growth. Key holdings include Curient, Sungho Electronics, and BHI, along with value stocks such as Sungwoo Hitech and CJ Freshway. The initial portfolio comprises approximately 57 stocks.

"KOSDAQ is a dynamic market where global changes—demographic shifts, energy transition, and AI innovation—are reflected first," said Kim Ji-woon, Head of Investment Division 2 at Samsung Active Asset Management. "We will dedicate all our efforts to discovering 'hidden gems' based on on-the-ground company visits."

Timefolio Asset Management also unveiled a strategy leveraging active ETF strengths. The TIME KOSDAQ Active ETF pursues excess returns through a "Core & Satellite" strategy. The approach secures stability by placing KOSDAQ blue-chips in secondary batteries and biotech as core holdings, while targeting additional returns through a satellite portfolio that responds to theme rotations and supply-demand shifts.

The initial portfolio centers on leading secondary battery stocks including Ecopro and Ecopro BM, alongside biotech companies such as Samchundang Pharmaceutical, ABL Bio, and Alteogen. It also invests across growth industries including semiconductor and advanced technology firms like Rainbow Robotics, FADU, and Leeno Industrial.

Industry observers expect active strategies to prove highly effective in the KOSDAQ market, which is a growth-stock-focused market where industrial paradigm shifts are quickly reflected. Given the high volatility of individual stocks and rapid rotation of market leaders, active stock selection may be more advantageous for generating excess returns than simple index tracking, analysts say.