KOSPI Rally Drives Structural Shifts in the ETF Market
The recent rally in the KOSPI has led to significant losses for leveraged inverse (bear) ETFs, known as 'geoppbus' in Korea. Notably, flagship funds like RISE2 200 Futures Inverse 2X have hit record lows, with most leveraged inverse ETFs trading at around 100 won. Due to negative compounding effects, these products are structurally prone to ongoing losses, resulting in waning investor interest. Data from NH Investment & Securities highlight the severity, revealing that 99.99% of 'geoppbus' ETF investors have suffered losses, and the ETFs face inherent difficulties in price normalization due to constraints on stock splits or consolidations.
Meanwhile, major structural changes are underway in the domestic capital market. On the 22nd of next month, eight large asset management firms will jointly launch a total of 16 single-stock leveraged ETFs on the Korea Exchange—the first of their kind in the country. The move has sparked considerable interest among investors, with over 2,000 registering for the required pre-investment education course and 1,654 completing certification. Access to these single-stock leveraged ETFs will require both course completion and a minimum deposit of 10 million won. Products investing in Samsung Electronics and SK Hynix are among those slated for launch, but small management firms are excluded due to a lack of track record. This has raised concerns of increased market dominance by large firms, with small companies being urged to focus on their existing ETF portfolios.
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조선일보2026 4月 29
KOSPI's Surge Makes 'Leverage Inverse ETF' Become Penny Stock - Chosun IlboAmid KOSPI's surge, investors betting on falling leverage inverse ETFs face defeat. As KOSPI continues its recent rally, ETFs that track the index inversely by 2x, known as 'leverage inverse ETFs', are recording a collapse in returns. The price has fallen to the 100 won range, with trading value and volume plummeting.
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