South Korea Weighs Low-Cost ETFs for Children's Long-Term Fund

South Korea is considering ETF-based investments for its planned “Our Children’s Self-Reliance Fund,” which will combine government and parental contributions to build assets from birth. The U.S. Trump Account provides a model, using ultra-low-cost broad-market ETFs such as SPYM, which tracks the S&P 500 for a 0.02% fee. Korea could use KOSPI 200 ETFs such as KODEX 200, but its 0.15% expense ratio raises concerns about compounding costs. Policymakers are also weighing a diversified mix of Korean and U.S. equities to pursue the fund’s 6% annual return target while supporting domestic markets.