Samsung Active Asset Management and Timefolio Asset Management will simultaneously launch KOSDAQ active exchange-traded funds on the same day with identical product names, aligning with the government's policy to revitalize the KOSDAQ market. While both products share a similar basic structure as active funds seeking to outperform their benchmark through manager discretion, differences in specific strategies and fee structures are expected to spark direct competition.
According to the financial investment industry on the 2nd, Samsung Active and Timefolio Asset Management plan to launch their KOSDAQ active ETFs simultaneously on the 10th of this month. Both products use the entire KOSDAQ index as their benchmark, targeting excess returns relative to the index. Hanwha Asset Management will also list its "PLUS KOSDAQ150 Active" product, which uses the KOSDAQ150 index as its benchmark, one week later on the 17th.
The product names from Samsung Active and Timefolio are "KoAct KOSDAQ Active" and "TIME KOSDAQ Active" respectively, but they differ in total expense ratios. Samsung Active's "KoAct KOSDAQ Active" has a disclosed total expense ratio of 50bp (bp=0.01 percentage points), while Timefolio's "TIME KOSDAQ Active" is set at 80bp. Hanwha Asset Management's fee is the lowest among the three products at 15bp.
Industry observers note that for active ETFs, the key factor is whether sustained outperformance can offset fee differences rather than the fee gap itself. Samsung Active has proposed a strategy of selecting and concentrating investments in promising industry leaders within KOSDAQ. The firm has divided its investment universe into seven sectors centered on major growth industries including pharmaceuticals and biotech, semiconductor materials, components and equipment, robotics, aerospace and defense, and energy. Additionally, the fund aims to maintain approximately a 70-to-30 ratio between growth and value stocks, pursuing "alpha" above the benchmark from undervalued stocks relative to earnings growth.
The firm also plans to focus on stock selection by combining small and mid-cap management experience with in-house research. Kim Ji-woon, Head of Investment Division 2 at Samsung Active Asset Management, who oversees this fund's management, has been managing the "Samsung Small-Mid Cap FOCUS" public fund since 2023. All active ETF managers within the company are reportedly participating in a task force format alongside the research center to focus on product development.
Timefolio Asset Management, known domestically as an "active management powerhouse," plans to manage its KOSDAQ active product through a "Core-Satellite" structure. This approach forms a market axis with a core portfolio while seeking additional returns through satellite portfolios. The strategy involves adding select new growth theme stocks on top of a portfolio centered on established KOSDAQ large-cap sectors such as biotech and secondary batteries, pursuing excess returns within a range that does not significantly deviate from market trends.
The KOSDAQ market has recently seen growing expectations for structural improvement after financial authorities introduced new delisting requirements for penny stocks and streamlined delisting procedures. Domestic retail investors have purchased 2.9767 trillion won and 1.4762 trillion won worth of "KODEX KOSDAQ150" and "KODEX KOSDAQ150 Leverage" respectively since the beginning of this year. An asset management industry official said, "KOSDAQ is a market with high concentration in specific themes and significant volatility," adding that "stock selection capabilities will determine product performance, as flexible weight adjustments are crucial during sector rotation phases."