KOSPI Surge and Volatility in the ETF Market
The recent 15% surge in South Korea's KOSPI index over a month has significantly impacted the ETF market. Individual investors focusing on stable returns are offloading substantial amounts of safe ETFs like parking-style funds. Conversely, there is a growing demand for ETFs tracking the KOSPI200, and inverse ETFs betting on index declines. As a result, the total net asset value of the ETF market has surpassed 280 trillion won, which could potentially increase market volatility.
Individual investors are notably selling synthetic ETFs such as KODEX CD Rate Active in large volumes due to the rising stock market, prompting a preference shift towards index-tracking ETFs. The surge in popularity of index ETFs like KODEX 200 and TIGER 200 indicates a shift in investment strategy, complemented by growing interest in inverse ETFs to prepare for bearish market conditions. These shifts contribute to the market's instability and could significantly influence future investment trends.
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In Bull Market, Individual Investors Switch to Aggressive Mode... Sell Stable ETFs and Accumulate 1 Trillion KRW of 'KODEX 200' [Market Signal] - Seoul Economic DailySecurities > Domestic Stock Market News: As the KOSPI index continuously reaches record highs in an unprecedented bull market, individual investors are shifting from secure returns to more aggressive strategies, as they...
KOSPI Rises… Individual Investors Sell Stable ETFs in Bulk - SBS Biz[On the 12th, KOSPI closed at 4,150.39, up 44.00 points (1.07%) from the previous session, as dealers conduct their business in the dealing room of Hana Bank's headquarters in Seoul. (Photo=Yonhap News)] Individual investors have been selling a large number of exchange-traded funds (ETFs) that aim for stable returns, following a sharp rise in KOSPI over the past month. As of today (13th), according to the financial investment industry, over the past month (October 10&…