Korean ETF Market Sees Surge in Inverse and Leveraged Products Amid Volatility
On the 26th, the South Korean ETF market saw strong performance from inverse products betting on a decline in the KOSPI200 index. Major inverse ETFs, such as KODEX 200 Futures Inverse 2X, showed notable gains, while dollar inverse and semiconductor leveraged products experienced substantial declines. Among thematic ETFs, those focused on Mexico recorded gains, whereas K-semiconductor themes underperformed. Fund flows revealed heavy inflows into KODEX leverage and semiconductor-related products, while outflows were observed in KOSPI200 index trackers and bond-type ETFs.
Recently, trading volume for leverage and inverse exchange-traded products (ETPs) in the Korean equity market has risen sharply. As of the 10th of this month, the average daily trading value for domestic stock-based leveraged and inverse ETPs in 2023 had soared 3.5 times compared to the previous year, reaching KRW 5.6 trillion. This upsurge is largely driven by individual investors seeking high returns through aggressive leverage strategies. Meanwhile, geopolitical instability in the Middle East has significantly increased trading in crude oil-linked ETNs. Experts caution that amid such pronounced market volatility and heightened risks, investors should approach these products with care.
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[ETF Market] KOSPI 200 Inverse Dominates Top 5 Earnings... Dollar Inverse Plummets - NewsPim[Seoul=NewsPim] Reporter Yang Tae-hoon = On the 26th, in the domestic Exchange Traded Fund (ETF) market, inverse products betting on the decline of KOSPI 200 dominated the top rankings in earnings, while the dollar inverse product, which showed strength the previous day, switched to a sharp decline. According to Koscom ETF CHECK, the top-performing ETFs of the day
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Retail Investors Bet Big on Oil with 'Leverage ETF' - 5 Trillion Won Wager - Dong-A IlboAs the Korean stock market, which recently ranked first in annual returns among major global stock markets, experiences sharp fluctuations following the Middle East war, individual investors are aggressively entering into oil-related products. Particularly, they are betting investment funds on obtaining profits double or more from the fluctuations in oil prices, with a focus on oil-related ETFs…