South Korean entertainment has stormed to the top of the global charts — and now an ETF provider is hoping that acclaim can translate into financial gains for exchange traded fund investors beyond the Asian country.
Research suggests that thematic ETFs, on average, underperform — partly because, by the time they launch, they are already late to the party. But CT Investments, a newcomer to the ETF industry, thinks the craze for Korean entertainment is far from over.
Domestic South Korean investors are already enthusiastic buyers of narrow theme-driven ETFs and can access funds focused on ‘K-Pop’ music, gaming, the metaverse, and even Korean food, according to Jackie Choy, director of exchange traded fund research for Morningstar Asia.