"17 Percentage Points Ahead of Passive..." DS Asset Management Makes Its Mark With First ETF [FN Market Watch]

[Financial News]  DS Asset Management is making a strong showing in the KOSDAQ active ETF market just over two months after entering the exchange-traded fund (ETF) market. Its return over the past month exceeded that of the KOSDAQ 150 Index by more than 17 percentage points, prompting assessments that the latecomer's stock-selection strategy is paying off.
According to DS Asset Management on the 22nd, the DS KOSDAQ Active ETF posted a one-month return of 18.18% as of the closing price on the 21st. The Samsung KODEX KOSDAQ 150 ETF returned just 1.16% over the same period. This represents an excess return of 17.02 percentage points over simply tracking the index.
The gap is also clear when compared with competing active ETFs. Over the same period, the TIGER KOSDAQ Active ETF returned 12.70%, the KoAct KOSDAQ Active ETF 10.74%, and the Midas MIDAS KOSDAQ Active ETF 9.35%. Among the active ETFs included in the comparison, the DS ETF posted the highest return.
What stands out in particular is that DS Asset Management achieved this performance just over two months after entering the ETF market.
The DS KOSDAQ Active ETF, listed on July 14, is DS Asset Management's first ETF. Rather than simply tracking the KOSDAQ 150 Index, it seeks excess returns by expanding its investment universe to stocks outside the index. At the time of listing, 13 of its 29 holdings were not included in the KOSDAQ 150 Index.
Another differentiator is its active search for small- and mid-cap stocks with market capitalizations below KRW 1 trillion. The company uses its experience analyzing businesses through unlisted and pre-IPO investments, along with its proprietary data system, to actively adjust its stock selections and portfolio weightings.
An asset-management industry official said, "The competitiveness of active ETFs ultimately becomes evident in their ability to generate returns above the benchmark." The official added, "Although the fund's operating track record is still short, widening the gap with the KOSDAQ 150 Index to more than 17 percentage points over one month means that stock selection had a significant impact."
Another industry official said, "As the next test for DS Asset Management's active strategy will be whether it can continue generating excess returns even as the leading KOSDAQ stocks change, expectations are building." The official added, "Interest is also intensifying ahead of the launch of two new active ETFs within the year." 
[email protected] Kim Kyung-a Reporter