Analysis of the Expansion and Key Investor Trends in the Korean ETF Market
The Korean ETF market is experiencing rapid growth, with the total net asset value recently reaching 387 trillion won and expected to surpass 400 trillion won soon. Retail investors are serving as primary catalysts within the ETF market, taking up approximately 40% of total trading volumes and playing a significant role therein. This growth trajectory is likely to receive an additional boost following the financial authorities' authorization of individual stock leveraged ETFs.
Despite foreign investors recording net sales of 7.5 trillion won over the past seven trading days, the KOSPI market remains resilient, buoyed by the robust ETF buying trends among retail investors. These investors' aggressive purchasing actions have elevated net purchasing by financial institutions, thereby supporting the sustained rise of the KOSPI index. Factors such as exchange rates and potential inclusion in the MSCI index are currently seen as crucial determinants impacting foreign investment, with the potential to affect market volatility going forward.
Additionally, deposit and margin trading balances in the domestic stock market have hit record highs, reflecting a strong sense of optimism throughout the market. This is likely to contribute to a stable growth trajectory and a positive investment climate over the long term. Samsung Electronics and SK Hynix's continuous leadership within the market further promotes the stability of the ETF sector.
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Foreigners Realize Profits, Sell Up to 21 Trillion Won in a Month…Retail Investors Counter with ETF Purchases - sedaily.comIn February, foreign investors engaged in the largest monthly net selling ever in the KOSPI market, while retail investors countered by betting on a rising market through ETFs. The analysis suggests a tug-of-war in the supply-demand landscape between foreigners realizing profits in a surging market and individuals responding with 'index tracking'.
Profit-taking foreign investors sell up to 20 trillion won monthly…Individuals betting on a rise, counter ETF purchase - sedaily.comIn February, foreign investors took part in the largest monthly net selling in the history of the KOSPI market, while individual investors countered by betting on a bullish market through Exchange Traded Funds (ETFs). The tug-of-war between foreign investors taking profits in a rapidly rising market and individuals responding through 'index tracking' has reshaped the supply and demand structure, according to analysis.
The Power of ETFs Leading the Breakthrough of 6300...80 Trillion Won Grown in a Month - SBS Biz[Anchor] You've observed the stock market trends, and despite a correction of over 2%, the KOSPI, which was around 2600 at this time last year, is now hovering around 6200, showing a remarkable upward trend. Amid this, the investment funds have newly gravitated towards products, namely ETFs, which allow automatic diversified investment. Today (27th), despite the institutional sell-off in KOSPI, financial investments are being made...
KOSPI Breaks through 6,300 Led by 'ETF Power'… Grew 80 Trillion in a Month - Yonhap InfomaxAs KOSPI surpasses the 6,300 mark, continuing its rally to record highs, an analysis suggests that the money move from deposits to stocks by individual investors and the explosive growth of the ETF market are the key drivers of the market. Jinhyuk Kang, a researcher at Shinhan Investment Corp., stated in a report on the 27th that "The money move from deposits to stocks among individual investors is picking up steam, and the buying trend of stocks through ETFs, along with individual stock purchases, is leading the market." Kang particularly noted the rapid growth of the ETF market. According to the report, the current total net assets under management (AUM) of listed ETFs amounts to approximately 379 trillion won.