Seoul: The net asset value of exchange traded funds (ETFs) has exceeded the 190 trillion-won (US$132 billion) milestone for the first time, largely due to strong investor demand, recent data revealed on Thursday. As of Wednesday, the net asset value of listed ETFs reached 190.55 trillion won, according to figures compiled by Yonhap Infomax, the financial data arm of Yonhap News Agency.

According to Yonhap News Agency, this figure represents the highest on record since 2002 when ETFs were first introduced in the local stock market. The rapid increase in net asset value suggests that the tally could surpass the 200 trillion-won mark as early as next month. Notably, in June 2023, the net asset value of ETFs had already crossed the 100 trillion-won threshold.

An ETF is an investment fund that is traded on stock exchanges and typically invests in a basket of stocks that track an index, or in commodities and bonds. The growth of the ETF market has been significantly supported by a consistent capital inflow as investors take advantage of low brokerage fees and stable returns.