Losses Increase for Individual Investors in Inverse ETFs
Over the past three months, individual investors placed significant bets on a downturn in the KOSPI market by investing heavily in inverse and leveraged ETFs. However, this strategy resulted in substantial losses as the market rose instead. Notably, the KODEX 200 Futures Inverse 2X ETF saw net purchases of 956.4 billion won, while the KODEX Inverse ETF attracted 173.9 billion won. Despite these efforts, the KOSPI index climbed 26.05%, causing the ETFs to yield returns of -40.41% and -22.26%, respectively.
Nevertheless, the securities industry remains optimistic, adjusting their projections by raising the KOSPI band to the 2,900-3,500 point range for the latter half of the year, suggesting expectations of further market growth.
This scenario highlights the significance of timely, data-driven investment decisions and underscores the importance of market analysis in avoiding risk in volatile environments.
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