Brokerage firms rename ETFs to attract more clients

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A string of asset management companies are rebranding their respective exchange-traded fund (ETF) products in a bid to woo customers and capitalize on the steep growth of the ETF market in Korea.

An ETF is a basket of securities bought or sold through a brokerage firm on a stock exchange.

The net asset value of the ETF market totaled 158.68 trillion won ($115.16 billion), up from 121 trillion won at the end of 2023, according to financial industry data, Wednesday.

Mirae Asset Global Investments and Samsung Asset Management dominate the market, with more than 70 percent of the market share.

Under the circumstances, smaller peers are rushing for a makeover of their brand images through renaming their product lineups to better appeal to clients.

On July 24, Hanwha Asset Management announced that it would rename its Arirang lineup to Plus, in line with the Lifeplus brand, which represents the financial affiliates under Hanwha Group.

An affiliate of KB Financial Group, KB Asset Management also has changed its ETF brand name from KBStar to Rise under the slogan “Rise Tomorrow.”

Two other asset management arms of banking groups — Shinhan and Hana — took the same step. Shinhan Asset Management renamed its ETF from SMART to SOL, while Hana Alternative Asset Management changed its KTOP brand to 1Q.

Kiwoom Asset Management is considering renaming its ETF lineup, which is divided into Kosef for passive ETFs and Heroes for active ETFs.

According to the sources, the company plans to integrate the two brands under Heroes in the fourth quarter in line with its baseball team, Kiwoom Heroes.