Impact of Leverage ETF Investments Amid Economic Uncertainty
The KOSPI index recently surged by 6.6%, closing at 2445.06 thanks to the positive impact of the tariff deferral announcement. Individual investors focused on leverage ETFs, achieving high returns. Substantial inflows were observed into KODEX Leverage and KOSDAQ150 Leverage, demonstrating that profits can still be made despite challenging economic conditions. However, experts warn that due to persistent market uncertainties, cautious investment approaches are still necessary.
Domestically listed leverage derivatives tracking U.S. tech stocks have seen significant appreciation due to the rise in NASDAQ and the Philadelphia Semiconductor Index. Supported by Trump's tariff deferral measures, these investments benefited from improved investor sentiment. Notable products include Mirae Asset's 'TIGER U.S. Philadelphia Semiconductor Leverage' and Hanwha Asset's 'PLUS US Tech TOP10 Leverage', reflecting the strong performance in tech stocks and revived investor confidence.
The ongoing global economic downturn fears and prolonged U.S.-China tariff disputes have continued to fuel market volatility. Investors are adopting divergent strategies wherein individual investors are actively purchasing leverage ETFs, viewing it as a buying opportunity at lower prices. Conversely, foreign and institutional investors are opting for inverse ETFs to hedge against possible further declines in the stock market. Experts advise investors to adopt a more cautious stance in light of such uncertain economic and policy environments.
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