Shinhan Asset Management has not launched new exchange-traded funds for nearly two months, with its most recent product 'SOL Aerospace Value Chain' listed on June 16. The company confirmed no new ETF listings are scheduled for this month, while competitors launched 23 new products during the same period since June 16. The launch pause follows a June 8 incident where Shinhan's brokerage order contributed to an 85.60% tracking error in a single-stock leveraged ETF, prompting government regulatory tightening. Market share growth has slowed to 0.02 percentage points between June 16 and July 27, compared to competitor Hanwha Asset Management's 0.09 percentage point gain. Shinhan stated it is preparing multiple new products while monitoring investor demand changes in the rapidly shifting market environment.
Shinhan Asset Management Records Two-Month ETF Launch Gap
Shinhan Asset Management's last ETF launch occurred on June 16 with the listing of 'SOL Aerospace Value Chain.' As of July 29, the company has no products with standard codes issued prior to listing. The standard code issuance-to-listing process typically requires two weeks, indicating no new launches are feasible for approximately two months.
Competitors Launch 23 New ETFs Since June 16
Between June 16 and July 29, competing asset management firms listed 23 new ETF products. Top-ranked firms Samsung (2 products), Mirae Asset (1 product), KB (2 products), and Hanwha Investment (4 products) all expanded their product lineups during this period. Among the top 10 asset managers by market share, all except active-strategy specialist Timefolio launched between 1 and 4 new products. In 2023, Shinhan launched 19 ETF products with at least one new listing each month. Through June of the current year, Shinhan had launched 9 new ETF products.
Market Share Growth Slows to 0.02 Percentage Points
Shinhan Asset Management's ETF market share stood at 4.95% (21.8 trillion won) as of July 27, an increase of 0.02 percentage points from 4.93% on June 16. During the same period, sixth-ranked Hanwha Asset Management increased its share from 2.55% to 2.64%, a gain of 0.09 percentage points. Shinhan's flagship product 'SOL AI Semiconductor TOP2 Plus,' launched in March, surpassed 5.5 trillion won in net assets.
June 8 Tracking Error Incident Triggers Regulatory Review
On June 8, the 'ACE SK Hynix Single-Stock Leverage' ETF closed 49.70% higher during the simultaneous call auction period, while the underlying SK Hynix stock fell 7.68%. The tracking error reached 85.60%. Shinhan Asset Management placed a buy order of 46,813 shares through a brokerage firm during the closing auction, contributing to the price surge. Total trading volume for the ETF that day was 1.19 million shares. Other single-stock leveraged ETFs recorded trading volumes of 111.6 million shares on the same day.
Government Announces New Listing Restriction Penalties
Following the incident, the government announced enhanced tracking error management requirements for ETFs. The new regulations include restrictions on new ETF listings for a specified period for firms that violate tracking error management obligations. A Shinhan Asset Management representative stated the company is preparing multiple new products and reviewing both previously planned products and new strategies while monitoring changes in investor demand amid rapid market shifts.
FAQ
What was Shinhan Asset Management's last ETF launch before the current gap?
Shinhan Asset Management's most recent ETF launch was 'SOL Aerospace Value Chain,' which was listed on June 16. Since that date through July 29, the company has not issued standard codes for any new products, indicating no new launches are scheduled for approximately two months.
How did the June 8 tracking error incident affect regulatory policy?
On June 8, Shinhan's buy order of 46,813 shares in the 'ACE SK Hynix Single-Stock Leverage' ETF during the closing auction contributed to an 85.60% tracking error. The government subsequently announced strengthened tracking error management rules, including restrictions on new ETF listings for firms that violate management obligations.
How many new ETFs did competitors launch while Shinhan paused?
Between June 16 and July 29, competing asset management firms launched 23 new ETF products. Top-ranked firms including Samsung (2 products), Mirae Asset (1 product), KB (2 products), and Hanwha Investment (4 products) all expanded their lineups during Shinhan's launch pause.
