JPMorgan leads Asia’s ETF rush

Asset managers from New York to Seoul rush to launch products as Asia’s retail investors drive soaring demand for US tech stocks. Asia’s hunger for US tech stocks is rising, with retail investors from Taiwan and South Korea flooding into new ETFs. Leading the way is JPMorgan Asset Management.

Earlier this month, JPMorgan introduced a new Taiwan-listed active ETF. The product allows local investors to gain exposure to technology giants in the United States, including Apple, Microsoft, and Nvidia. Subscription will begin on September 30 and run until October 3. The bank considers this a critical move to increase its ETF business in Asia.

Philippe El-Asmar, head of APAC ETF, digital & direct at JPMorgan Asset Management, said the firm views active ETFs as a key growth driver in the region.

Mirae Asset Global Investments in South Korea is also making a big push. This month, its Tiger ETF arm introduced a fund that invests in US software companies linked to artificial intelligence. Mirae’s executives say the move is a direct reaction to the boom in retail trading.

Nathan Namki Kim, head of ETF management at Mirae Asset, said the rise in retail investing has created a strong demand for new product development.

These launches have brought the total to 19 US tech-focused ETFs in Asia just this year. That paces the region to surpass the 22 debuts of last year. In all, 63 of these ETFs are now listed in Asia.

Retail money fuels momentum and risk

Retail investors across Asia are proving to be strong fans of US tech equities, especially the “Magnificent Seven” megacaps. These companies, which include Alphabet, Amazon, Meta, Microsoft, Nvidia, Tesla, and Apple, have driven the Nasdaq 100 up more than 115 percent since late 2022.

However, the flows are volatile as US tech ETFs in Asia have seen more than $500 million of net outflows over the last three months. Analysts caution that the rally may be overheating and that too much money is piled into just a few stocks.

Yet the broader trend remains intact: over the last three years, Asian investors poured more than $4.3 billion into US tech ETFs, betting that Federal Reserve rate cuts and AI-driven optimism will extend the rally.

The Nasdaq 100 gained more than 4.5% in September through its close on the 24th, making it the best month since June. Rebecca Sin, an ETF analyst at Bloomberg Intelligence, said US tech remains a strong growth area in Asia with many opportunities for issuers, adding that recent outflows may reflect profit-taking after months of solid gains.

Asia’s ETF explosion broadens beyond tech

The rush into tech ETFs is part of a broader wave crashing across Asia’s ETF market. In just the first eight months of 2025, 461 new ETFs have started trading. It is that pace that could exceed the 508 recorded last year.

Bloomberg Intelligence predicts that total ETF assets in Asia will soar to $8 trillion by 2035, from just under $2 trillion today. China is poised to lead the charge, but markets in Taiwan and South Korea are also growing rapidly. The US ETF market is already valued at about $12.5 trillion.

Retail-heavy Asian markets like JPMorgan are a huge new opportunity for large asset managers worldwide. Day traders in South Korea, Taiwan, and elsewhere in the region are increasingly looking for higher returns overseas, notably in US technology.

The momentum is not without danger as heavy concentration in a handful of megacap US companies leaves investors exposed if sentiment shifts. A rising tide of competition among ETF sponsors also means that any product must stand out in a crowd.

Still, the aggressive entry by JPMorgan puts it at the head of the pack. In its aggressive push to grab Asia’s retail demand, the Wall Street giant is compelling rivals to hasten their launches.

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