Get To Know More About The Upcoming K-Pop ETF That Will Track South Korean Entertainment Stock Prices

An exchange-traded fund (ETF) that tracks Korean entertainment stocks will be launched soon according to a report by Bloomberg News.

The report says that a fund manager in the United States has applied to the Securities and Exchange Commission (SEC), a US securities authority, to allow a "K-Pop ETF" to launch an ETF that tracks the stock price of Korean entertainment companies.

The SEC is expected to approve it, and if approved, it will become the first ETF to track the K-Pop entertainment scene among ETFs traded in the US and Europe, Bloomberg reported.

"Exchange Traded Concept," an ETF manager in the United States, recently submitted documents to the SEC requesting the launch of a K-pop ETF.

The company explained in the document that it has created an ETF that tracks the stock prices of Korean music, film, drama, and other entertainment companies. The company added that more than 60 ETFs under its umbrella will join it once the SEC permits it.

As of the end of February, the company had assets of about $8.6 billion (about 10.7 trillion won) under management

"ETFs are increasingly targeting niche markets," said Henry Jim, ETF analyst at Bloomberg.

K-pop has been rapidly expanding its base since it received worldwide attention with "Gangnam Style" in 2012. Currently, K-Pop idol groups like BTS, EXO, BLACKPINK, TWICE, NCT, SEVENTEEN, Stray Kids, TREASURE, ITZY, and aespa are leading the genre's expansion into the international music scene.

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Meanwhile, the impact brought upon by senior groups like Super Junor, Girls Generation, 2NE1, and BIGBANG, udeniably played a crucial role in setting the first steps to K-Pop's international recognition.

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Many K-Pop artists are making their venture in the international music scene and the genre is expected to gain more global recognition in the years to come.

Stay tuned for more K-Pop news and updates!