-63% 'Samsung Electronics and SK Hynix leveraged ETFs' manager rakes in fees

[Financial News] Asset managers earned about 3.7 billion won in fees over the two months after launching single-stock leveraged products, data showed.

According to Newsis, the provisional management fees for 16 single-stock leveraged exchange-traded funds (ETFs) came to 3.665 billion won from May 27 to July 28.
The figures were based on a response submitted by the Financial Supervisory Service to a lawmaker's inquiry at the National Policy Committee. By manager, Samsung Asset Management's fees from its 'KODEX Samsung Electronics Single-Stock Leveraged ETF' and 'KODEX SK Hynix Single Stock Leverage ETF' totaled 3.029 billion won, accounting for about 83% of the total. Samsung Asset Management, the industry leader by market share, set the annual management fee rate for the two products at 0.27%, higher than the 0.07% to 0.20% charged by other managers.
Mirae Asset Global Investments, which set an annual fee rate of 0.07%, the lowest in the industry, earned a total of 485 million won in management fees from its 'TIGER Samsung Electronics Single-Stock Leveraged ETF' and 'MiraeAsset TIGER SK Hynix Single Stock Leverage ETF'.

'KODEX Samsung Electronics Single-Stock Leveraged ETF' and 'KODEX SK Hynix Single Stock Leverage ETF' have posted returns of -53.94% and -62.72%, respectively, since listing. 'TIGER Samsung Electronics Single-Stock Leveraged ETF' has returned -52.48% since listing, while 'MiraeAsset TIGER SK Hynix Single Stock Leverage ETF' has returned -62.97%.
Hanwha Asset Management (PLUS) and Shinhan Asset Management (SOL) recorded management fees of 49 million won and 35 million won, respectively, from two products each. They are the only firms in the industry that manage inverse 2x ETFs for Samsung Electronics and SK hynix. Korea Investment Management (ACE) earned 26 million won, KB Asset Management (RISE) 21 million won, Kiwoom Asset Management (KIWOOM) 13 million won, and Hana Asset Management (1Q) 7 million won.
Management fees are charges asset managers receive for operating and managing ETFs, and they are automatically deducted from investors' holdings.
Meanwhile, the financial authorities introduced follow-up measures related to single-stock leveraged products, including raising the initial deposit required for investors from 10 million won to 30 million won starting on the 31st of last month. Since then, speculative trading has eased somewhat, with average daily trading value falling to about one-tenth of previous levels.
[email protected] Kim Hee-sun Reporter