Bond ETFs Boom in Korea With Retail Investors Driving $2.4 Billion Inflows
- Individual investors shift to credit ETFs to get higher yields
- Growth of retail investors in credit is welcome event: Mirae
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Individual investors have helped drive an almost 50-fold increase in inflows into exchange-traded funds focused on South Korean corporate bonds in a bet interest rates are about to peak.
Net inflows into ETFs that include the nation’s corporate debt surged to 3.2 trillion won ($2.4 billion) in the first quarter, from just 68 billion won in the same period a year earlier, according to data provider KG Zeroin Co. More than half of the 23 ETFs have only been launched since August, a sign of the boom in retail-investor demand.