Structural Shifts in Korean ETF Investments and Recent Market Trends
Shinhan Investment Corp. identifies that the increase in purchases by financial investors, especially securities firms, in the Korean stock market is driven not merely by mechanical demands like ELS hedging but by the rise in individual investors' ETF participation, termed as a 'structural money movement.' The growing proportion of ETFs amidst the expanding pension market indicates that this fund movement is inducing structural changes in the domestic stock market.
After a continuous rise from the beginning of the year, KOSPI has recently entered a correction phase. Individual investors have shown significant interest in KODEX 200, which tracks the KOSPI 200, while the purchasing momentum for inverse products has decreased. In addition to the movements of individual investors, foreign investors also exhibit volatility in their buying patterns, while institutional investors consistently bet on the rise of the domestic stock market. Nonetheless, potential risks from the U.S. stock market and geopolitical factors should be considered as possible influences on KOSPI.
Meanwhile, iM Investment is hosting a tax-saving product and pension trading event, offering various benefits to customers purchasing KODEX and TIGER ETFs. Customers utilizing ISA and pension savings accounts for installment purchases or transferring and adding to ISA accounts from other institutions are eligible for these benefits. Additionally, similar benefits are provided to customers purchasing ETFs through retirement pension DC accounts or designating products as default options.
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iM Securities Launches ETF Purchase Event for ISA and Pension Savings CustomersiM Securities announced on the 21st that it will hold a tax-saving product and retirement pension trading event until March 31. The event targets customers holding tax-deductible accounts such as iM Securities' Individual Savings Account (ISA) and pension savings, offering ETFs like KODEX (Samsung Asset Management) and TIGER (Mirae Asset Management)...
Mystery Over KOSPI Buying Securities Firms: 'Simple Market Making' vs 'ETF Money Move' - Yonhap InfomaxThere is a divergence in perspectives between foreign and domestic securities firms regarding the nature of the buying spree led by 'financial investment (securities companies)' during the recent KOSPI rally. Some foreign investment banks (IB) argue that it is 'mechanical market making' for derivative product defense and suggest that the structural demand is weak. Conversely, domestic securities firms view it as a 'structural money move' driven by individual investment funds moving into ETFs (Exchange Traded Funds). On the 21st, Shinhan Investment Corp analysts Lee Jae-won and Noh Dong-gil reported that the recent net buying trend by financial investments is not attributable to arbitrage trading or ELS (Equity-Linked Securities) hedge volumes. This follows recent discussions by a foreign IB regarding the rise of the Korean stock market.
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