Analysis of South Korean ETF Market and Stock Trends
The South Korean ETF market has recently witnessed an inflow of $1 billion in global funds. The EWY, having seen a net influx of 4 trillion won since the beginning of the year, is drawing significant attention due to its high performance. Contrarily, foreign investors are selling off Korean stocks, and there is a noted lack of accessibility for individual foreign investors into the Korean market. In response, the government is actively working on promoting an upgrade to the MSCI Developed Market Index and quality improvements through a task force.
Meanwhile, on the 25th, the KOSPI index surpassed the 6000 mark, intensifying investors' concerns about stock purchases. Experts advise incrementally purchasing high-cap stocks or ETFs while being cautious about the high market volatility. Furthermore, they recommend approaching major industry blue-chip stocks as a strategic method. The total net assets of domestic ETFs have also significantly increased, along with a rise in the balance of margin trading.
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