New Changes and Challenges in the Korean ETF Market
Financial authorities in Korea are considering the introduction of single-stock leveraged ETFs and fully active ETFs to revitalize the local stock market. This comes as a strategic move to address regulatory asymmetries compared to the global market and to enhance the competitiveness of the capital market. With major stocks like SK Hynix and Samsung Electronics on the rise, these changes are expected to widen investment opportunities and invigorate the market.
The Korea Exchange extends trading hours by introducing pre-market and after-market sessions to bolster competitive edge in market share. This comes amid intense rivalry with NextTrade, an alternative trading system that has seen rapid growth since its launch. The strategy aims to maximize liquidity and convenience for traders. NextTrade plans to reduce trading costs and actively support liquidity providers, indicating a potential expansion in the ETF market.
Recent rises in the KOSPI have paralleled increased returns for ETFs, especially those focused on semiconductors, aerospace, and securities. Notably, the 'TIGER Semiconductor TOP10 Leverage' and 'KODEX Semiconductor Leverage' ETFs achieved outstanding returns of 90.90% and 87.62%, respectively. Experts advise caution with leveraged investments, particularly given the high volatility of the current market.
Related ETF
Related News
KRX·NXT Stock Market Share Competition…Extended Hours and ETFs Expand the Front - Yonhap InfomaxAs the stock market boom has continued since last year, the competition for market share among domestic exchanges has intensified. According to the financial investment industry on the 18th, the Korea Exchange will introduce pre and aftermarket sessions in the domestic stock market from June 29. The exchange plans to significantly extend the trading hours to 12 hours by establishing a pre-market (7AM-8AM) and aftermarket (4PM-8PM) in addition to the regular market (9AM-3:30PM). While extending trading hours is inevitable as the 24-hour global exchange competition intensifies, the market share competition with the alternative trading system (ATS) NextTrade, launched in March of last year, is cited as the background for this trading hours extension.
It's February and the Return is 90.90%, Semiconductor Double Leverage Investment Succeeded - Dong-a IlboAs the KOSPI soared over 25% compared to the beginning of the year, ETF returns are also on the rise. According to the Korea Exchange, there are already products that have achieved nearly 100% returns this year (from January 2 to February 10). Among the 1,058 ETFs, the one with a 90.90% return has ranked first…
Related ETF
ETF Horizon Opens… Single Stock Leverage and Active ETFs Await Debut - Yonhap InfomaxAs the domestic stock market flourishes, exchange-traded funds (ETFs) have become a popular investment tool for the public. Accordingly, financial authorities are moving to lift restrictions on ETF product development to invigorate the stock market and resolve global regulatory asymmetries. According to the financial investment industry on the 18th, the government recently announced plans to introduce single stock leverage ETFs and fully active ETFs to stimulate the domestic market. This is intended to align regulatory fairness between foreign and domestic stock markets. While the KOSPI soared this year, major stocks like SK Hynix and Samsung Electronics showed a steeper rise than the index.