The answer to investing smarter than stocks
Get on the magic wheel called ETF!

The influence of ETFs (exchange-traded funds) is rapidly increasing in domestic and international stock markets.
As of September 2025, the domestic ETF market size reached 240 trillion won, and its growth is expected to accelerate further. ETFs have already established themselves as a representative investment vehicle, easily accessible to individual investors.
It is a trend that goes beyond the realm of simple investment and becomes a reliable companion in one's life cycle, including making money, preparing for retirement, and educating children.
However, despite the market's rapid growth, there is still a lack of practical guidance for investors to properly understand the structure and use of ETFs.
To fill this gap, "First Steps in ETFs," written by experts with experience at the Korea Exchange and the forefront of the securities industry, has been published.
This book can be called a "textbook for ETF investment" that helps both beginner and expert investors properly understand and utilize ETFs.


ETFs have expanded beyond simply tracking a specific index to encompass a wide range of areas, including commodities, bonds, foreign stocks, and thematic investments.
Reflecting these changes, "First Steps to ETFs" presents a method for implementing the essence of investment—asset allocation and global diversification—with the efficient tool of ETFs.
This book will serve as a "first guide to ETFs" for readers with little financial investment experience, and as a "practical reference book that broadens strategy and perspective" for experienced investors.

As of the end of June 2025, the global ETF market size was $17 trillion, an increase of $2 trillion in just half a year compared to the end of 2024.
The U.S. market is worth $12 trillion, over 70% of the global market, and the size of passive ETFs exceeds 90%.
Few mega-funds have outperformed the S&P 500, the largest index in the U.S. market, over the long term.
Among the newly listed ETFs, the active portion is high at a ratio of 3:7. However, as the passive market has matured and competition has become fierce, this should be understood as a natural market movement to seek out new markets.

--- From "Part 1: Things You Must Know to Invest Properly in ETFs: Chapter 1: Building the Basics of ETF Investment"

Dividends received from an ETF are called distributions. They're called distributions because the asset management company distributes dividends from the various stocks held by the ETF to ETF investors.
The date on which investors receiving dividends are determined is called the "distribution payment date," which is the same as the date on which the company determines the shareholders to be included in the shareholder register.
Typically, stock ETFs are based on the last trading day of January, April, July, October, and December each year. Monthly dividend ETFs, which are gaining popularity, are based on the last trading day of each month. Since it takes two days for settlement to be completed after purchasing an ETF, to receive the dividend, you must purchase the ETF at least two days before the dividend payment date.
--- From "Part 1: Things You Must Know to Invest Properly in ETFs: Chapter 2: Building Practical Knowledge in ETF Investment"

The reason KOSPI 200 is important is because it serves as a benchmark for comparing performance across fund products.
When calculating loan interest, we calculate the interest rate by adding a surcharge based on the most credible indicator, such as the CD interest rate.
An indicator that is credible and widely used in the financial market is called a benchmark.
The KOSPI 200 stock index is the oldest index in the Korean stock market and is the basis for the futures and options market. It is called the market representative index and is the benchmark for the Korean stock market.

--- From "Part 2: 47 Profitable ETF Investment Methods for Beginners: Chapter 1: The Basics of ETF Investment"

Have you heard of active ETFs? Since their introduction in 2017, active ETFs have listed 262 stocks across various assets, including stocks and bonds, as of the end of June 2025.
It accounts for a large proportion, more than a quarter of all ETFs.
Simply put, an active ETF is a mutual fund managed by a fund manager that is listed on an exchange like an ETF.
While traditional funds require subscription through a securities firm or bank, active ETFs are much more convenient because they can be freely bought and sold on the stock market.

--- From "Part 2: 47 Profitable ETF Investment Methods for Beginners: Chapter 2: Director ETF Investment Method [In-Depth]"

The Dow 30 and S&P 500 are the indices representing the U.S. stock market, which are most invested in by investors referred to as "ants." The first calculation date for the Dow 30 was May 26, 1896, the year the modern Olympic Games were held in Greece.
The Dow Jones Industrial Average is so famous that it is often mentioned as a proper noun when talking about stock indices, as it has been around for over 100 years.
However, when talking about the representative index of the US market these days, the S&P 500 index is more representative.
--- From "Part 2: 47 Profitable ETF Investment Methods for Beginners: Chapter 3: Domestically Listed Overseas ETF Investment Method [Basics]"

Covered call ETFs are gaining popularity in the United States as they offer higher dividend yields than traditional high-dividend ETFs.
The secret to its popularity is that among the underlying index constituents, stocks with low volatility and high dividend payout ratios are selected and increased in weight, and the strike price is set higher than the current price by selling OTM options, so that some of the increase in the underlying asset can be reflected in the return, which has the effect of widening the range of upside restrictions, which is a weakness of covered calls.

--- From "Part 2: 47 Profitable ETF Investment Methods for Beginners: Chapter 4: Domestically Listed Overseas ETF Investment Method [In-Depth]"

There are various commodity-related ETF products listed on the Korean ETF market.
While the targets include familiar commodities like crude oil and gold, ETFs that invest in less familiar raw materials like soybeans, copper, and silver are also listed and traded.
Unlike securities such as equity securities (stocks) and debt securities (bonds), holding and managing physical raw materials incurs holding costs.
Holding costs include not only simple storage costs, but also insurance against theft and damage, electricity costs, and management personnel costs.
--- From "Part 2: 47 Profitable ETF Investment Methods for Beginners: Chapter 5: Direct Investment Methods for Overseas ETFs"

Have you heard of the "Tax-Savings Accounts Trio"? If you want to reduce taxes while investing in ETFs, it's important to utilize the so-called "Tax-Savings Account Trio": pension savings, IRPs, and ISAs.
These accounts offer various tax benefits and are advantageous for long-term investments.
The three major types of tax-saving accounts are broadly categorized into pension savings accounts, IRPs, and ISAs, which are not pension accounts.

--- From "Part 2: 47 ETF Investment Methods for Beginners to Make a Difference: Chapter 8: Tax-Saving Account Investment Method"

There is no one who has never experienced a loss while investing in stocks.
Even Warren Buffett, the world's greatest investor, has experienced the bitterness of loss.
But surprisingly, the national pension that we pay into every month is a bit different.
The National Pension Service's performance is truly legendary.
From 1988 to 2024, the National Pension Service achieved an average annual return of 6.82%, with only three years of negative returns during that period! The National Pension Service has weathered significant crises like the global financial crisis, the European debt crisis, and the COVID-19 pandemic, consistently generating profits without significant fluctuations.
How was this possible? The secret is asset allocation.

--- From "Part 2: 47 Profitable ETF Investment Methods for Beginners: Chapter 9: ETF Investment Roadmap for Financial Freedom"