Analysis of ETF Market Trends and Investor Strategies
Kakao Pay Securities released its analysis of user transactions for March, showing a decline in average returns on US stocks by -2.8%. Notably, the Tesla 2x Leveraged ETF (TSLL) was the most traded, with Tesla and NVIDIA also ranking high in trading activity. However, the emergence of inverse ETFs indicates a divergence in investment directions. As market volatility increased, younger investors actively responded by investing in leveraged and inverse ETFs, whereas middle-aged investors opted for a more stable approach focused on individual stocks.
In the US market, the VIX index reached its highest level since the onset of COVID-19, and the S&P 500 index plummeted significantly. Despite large losses in leveraged ETFs, with valuation evaporating by 38 trillion won, funds continue to flow into leveraged products like TQQQ, suggesting that investors are seeking to capitalize on market lows.
Similarly, the Kospi index rebounded after a sharp decline, supported by individual investors' bargain-hunting. These investors are heavily purchasing Kospi and Kosdaq leveraged ETFs, indicating expectations for a short-term rebound amidst global market volatility. However, uncertainties related to tariffs and the Federal Reserve's interest rate decisions persist, emphasizing the need for cautious investment strategies.
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KakaoPay Securities, March Foreign Individual Investor Average Return -2.8%[Hans Economy = Reporter Kim Yoo-jin] KakaoPay Securities announced on the 9th the analysis of transactions made by users on its platform for the month of March. Last month, the average return on U.S. stocks was -2.8%, indicating a shift to negative. This is a decline compared to 4.0% in February, showing an increased difficulty level in investing in the U.S. stock market. The Tesla 2x Leverage ETF (TSLL) continued to be the top purchase in March following February. Tesla and Nvidia ranked second and third, respectively, reflecting sustained interest in major tech stocks. Notably, MicroAlgo (MLGO) came in fourth.
US Stock Market Fear Index Surges... Money Pours into Leverage Investments Despite LossesUS Stock Market Fear Index Surges... Money Pours into Leverage Investments Despite Losses VIX Index reaches highest level since early 2020 during the COVID-19 pandemic as 38 trillion won evaporates from leverage ETFs over 3-4 days. On the 7th, over 2 trillion won influxes into '3x leveraged' TQQQ (Seoul = Yonhap News) Reporter Cha Byeong-seop = Under President Donald Trump's reciprocal tariff policy...
Individual Investors Focus on Buying KOSPI·KOSDAQ Leverage ETFs - DailyanRecently, individuals have been heavily purchasing leverage Exchange Traded Funds (ETFs) betting on the rise of domestic and international stock markets. Individual investors crowd into this opportunity as global markets are shaken daily by U.S. tariff threats and they perceive it as a chance for bargain hunting. According to the Korean Exchange on the 8th, the KOSPI index ended trading at 2334.23, up 6.03 points (0.26%) from the previous trading day. The previous day's KOS