Now ETFs also need to separate the wheat from the chaff… Why 'alpha' has become more important than 'beta' | Myung Min-jun, Park Ga-young, Choi Chang-gyu

Summary

In a discussion with hosts Myung Min-jun and Park Ga-young, ETF consulting division head Choi Chang-gyu explains how Korean shareholder return policies centered on Samsung Electronics, SK Hynix and Hyundai Motor are reshaping ETFs and the market. He argues that after June, ETF issuers have shifted from broad semiconductor beta toward alpha, bond-mixed defensive structures, and niche AI infrastructure themes. He also uses Apple as the long-term buyback model and says foreign selling during Korean buyback windows is not a negative signal.

• Korean buyback/cancellation programs are unprecedented and should spread across cash-rich KOSPI companies.
• Samsung Electronics and SK Hynix are increasingly viewed as having value-like shareholder return support, not just cyclical memory earnings.
• Asset managers are launching bond and bond-mixed ETFs to lower volatility and capture a bond rebound after rate rises.
• Active ETFs are expanding in Korea as the market shifts from beta to alpha/stock selection.
• New AI ETF launches are splitting into niche areas such as power, optical communications, data centers and physical AI.
• Covered call and dividend ETFs are tied to the shareholder return theme.
• FnGuide is cited as a listed index provider benefiting from ETF market growth.
• Apple is used as the benchmark for long-term consistent buybacks, while Hyundai Motor still needs to prove consistency.