Observing Changes in the ETF Market
Amid the declining stock prices of software companies, investors are heavily purchasing put options on the Invesco Senior Loan ETF to express a bearish outlook on the ETF. This has deepened the negative perception of the software sector among major investors, signaling potential market volatility. The surge in such option trading reflects uncertainties surrounding the fund's future, with ongoing outflows of capital being observed.
Conversely, the Software ETF listed in the U.S. market, known as IGV, has hit a 52-week low due to the disruptive innovation brought on by generative artificial intelligence (AI). With significant holdings like Salesforce and Adobe witnessing a price decline, the ETF overall has observed a 35% decrease. Analysts from UBS expect this AI-driven market disruption to become more pronounced in the U.S., with default rates potentially increasing by 3-5%.
Meanwhile, the semiconductor sector emerged as the most promising sector in the first half of the year, with Samsung and SK Hynix leading the field. However, there is potential for a cyclical market shift towards stocks that have not risen as significantly, offering new investment opportunities. Other promising sectors identified include biotechnology and robotics, with biotechnology expected to benefit from the ongoing U.S.-China tensions. In this evolving market, active ETFs are gaining prominence, with thematic rotation strategies like the 'RISE Korea Strategic Industries Active' catching the interest of investors.
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Yook Dong-hwi: 'Semiconductor Rally Will Continue in First Half' - Korea Economic DailyYook Dong-hwi expects the semiconductor rally to continue in the first half, with Yook Dong-hwi, the head of KB Asset Management, stating that Samsung Electronics and SK Hynix will lead. The bio and robotics sectors are promising in the second half.
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[AI's Stock Story] Options Market, Software Loan ETF Put Options Surge - NewsPimThis article is a premium article published at 07:57 AM on February 24 by 'The Overseas Stock Investment Helper' GAM (Global Asset Management). By signing up for a membership with GAM, you can view premium articles on over 9,000 overseas stocks. This article is translated by Artificial Intelligence (AI).
US Software ETF Hits 52-Week Low on AI Disruption Fears...Concerns that generative artificial intelligence (AI) will bring disruptive innovation to the software industry have pushed down software exchange-traded funds (ETFs) listed on the US stock market to their lowest price in 52 weeks. The IGV (iShares Tech-Software ETF), a representative software ETF listed in the US stock market, plummeted more than 5% in early trading on the 23rd (local time), dropping to $76.56 during the session. This marks the lowest price in 52 weeks. It is even lower than the $76.68 recorded the day after so-called 'Liberation Day' in April last year. Compared to the 52-week high of $117.98 recorded last September, the price of IGV has fallen by 35%.