South Korean Investors Exhibit Growing Interest in US ETFs
As large-cap stocks and semiconductor-related stocks in the domestic market perform strongly, young investors are expressing their enthusiasm by actively investing in leveraged ETFs. Correspondingly, investments in leveraged ETFs betting on the rise of the US semiconductor sector have surged.
Notably, high-risk instruments like the 'Direxion Daily Semiconductor Bull 3X (SOXL)' and 'ProShares UltraPro QQQ (TQQQ)' have attracted attention. This trend extends to individual semiconductor stocks, interpreted as a result of bargain buying following tech stock adjustments. Further, 'Direxion Daily MSCI South Korea Bull 3X (KORU)' and 'iShares MSCI South Korea ETF (EWY)' are also in the spotlight among investors.
Moreover, as South Korean investors significantly increase their investments in ETFs tracking US indices such as NASDAQ, S&P500, and semiconductors, the need for associated risk management has grown. By the end of 2023, South Korean overseas ETF investments surpassed 61 trillion won, representing a 3.5-fold increase over five years. Lawmaker Jeong Il-young has emphasized the need to enhance investor protection mechanisms and the competitiveness of the domestic capital market.
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