Unconventional ETF Managers in the U.S. Market
Roundhill, the Manager Behind the DRAM ETF
YieldMax, Known for Single-Stock Covered Call ETFs
As of June 2026, there were 5,059 ETFs listed on U.S. exchanges, more than four times the 1,155 listed on the Korea Exchange. Considering that the U.S. stock market is more than 15 times larger in market capitalization, Korea may appear to have a relatively large number of ETFs. However, market size and product diversity do not necessarily move in proportion. Japan, for example, has a stock market roughly 1.8 times larger than Korea’s, yet only around 440 ETFs are listed. The large number of U.S. ETFs, therefore, cannot be explained simply by the size of its capital market.
What makes the U.S. ETF market particularly diverse is that even small asset managers can succeed if they have a compelling investment idea. There are even firms such as ETC and Tidal that provide ETF listing and operational services, enabling firms with a strategy but without a full asset-management platform to launch ETFs.
Roundhill Investments, which attracted more than KRW 30 trillion within four months of launching its DRAM (Roundhill Memory) ETF, was founded only in 2018. Unlike long-established giants such as BlackRock, which operates iShares, or State Street, the manager of SPY, Roundhill has drawn market attention through innovative product ideas.
The asset manager of the ROBO Global Robotics & Automation ETF, a major robotics-themed ETF with approximately $2 billion in net assets, is ETC, an ETF platform provider. The strategy itself is developed and managed by ROBO Global, an index provider. In effect, ROBO Global participates in the ETF business through its investment strategy without being an asset management company itself.
ARK Investment, led by well-known CEO Cathie Wood, is one of the best-known managers of thematic growth ETFs. Its flagship ARK Innovation ETF (ARKK) became famous for investing early in Tesla (TSLA). Although its high volatility has limited sustained interest among Korean investors, ARK’s long-term thematic research remains a useful reference for institutional investors. In addition to Tesla, ARK currently holds substantial positions in Tempus AI (TEM), a key medical AI stock, as well as SpaceX (SPCX) and Coinbase (COIN).
YieldMax is well known for single-stock covered call ETFs. Its products are generally based on highly volatile stocks such as Tesla through TSLY, Coinbase through CONY, and AMD through AMDY. The strategy is to offset volatility by collecting high option premiums. More recently, YieldMax launched YSPC, a single-stock covered call ETF based on SpaceX, further establishing its own niche in the market.
Direxion is also well known among Korean investors for its triple-leveraged semiconductor ETFs. While its core products are 3x leveraged and inverse ETFs based on sectors or major indices, it has also expanded into single-stock leveraged ETFs. Products offering 2x exposure to SK hynix ADRs and SpaceX are examples.
Defiance focuses on thematic small- and mid-cap stocks. Its Quantum ETF (QTUM), which invests in the quantum computing theme, is a representative product. The character of the firm becomes even clearer when looking at the underlying stocks of its single-stock leveraged ETFs. Examples include IREN Limited (IREN) in the neocloud theme, Strategy Inc. (MSTR), known for its Bitcoin holdings, IonQ Inc. (IONQ) in quantum computing, and Rocket Lab Corporation (RKLB) in the space industry.
KraneShares specializes in Chinese equities in the U.S. ETF market. Its flagship product is the KraneShares CSI China Internet ETF (KWEB), which invests in major Chinese internet companies such as Tencent and Alibaba. KWEB is a large ETF with approximately $5.3 billion in net assets. Korean semiconductor leaders such as Samsung Electronics and SK hynix have attracted strong global attention, but U.S. managers such as Roundhill and Direxion moved quickly to capture related ETF opportunities in the U.S. market. It is unfortunate that Korean asset managers missed the chance to establish an early presence.
Nicholas Wealth, under its XFUND brand, launched the Memory Income ETF (DRMY), which sells call options on a portfolio of memory semiconductor stocks. Bridges Capital, meanwhile, operates its contrarian active ETF, BDGS, through ETF Architect, another outsourced ETF management platform. Rather than targeting customers who continuously add money to their investments, BDGS offers a strategy designed for retirees who need to make regular withdrawals.
These unconventional ETF managers add dynamism to the market not only through product diversity but also by becoming targets for mergers and acquisitions. For example, Goldman Sachs Asset Management acquired Innovator Capital, a specialist in buffered-option ETFs, in April this year and has more recently announced the acquisition of NEOS Investments.
The U.S. capital market, where a wide variety of ideas and strategies can be turned into investment products, continues to act as a black hole for global capital. Korea does not yet have specialist ETF managers built around unconventional strategies, nor does it have ETF platform firms comparable to those in the U.S. that help bring outside strategies to market. Small and mid-sized Korean asset managers do launch ETFs, but most are still based on major market indices. More ambitious ideas and stronger marketing are needed.
There are concerns that the side effects of single-stock leveraged ETFs could ultimately weaken the market itself. However, such risks can be addressed through appropriate regulatory safeguards and bolder initiatives by market participants. Hopefully, Korean ETFs can develop into another growth engine for Korea’s financial industry, alongside sectors such as semiconductors and defense.
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