Aggressive Investment in U.S. Stocks by Korean Investors and New Leverage ETFs Launch
Korean investors are projected to reach a monthly record by net purchasing $4.3 billion in U.S. stocks by October 22. This trend shows aggressive investments in triple leveraged ETFs and Tesla despite market uncertainties. However, there is a risk of substantial losses for many investors, which aligns with the Bank of Korea's warning about asset over-concentration. Especially, the KODEX American Individual Investor ETF dropped by about 21.5%, reflecting the market volatility.
In the U.S. stock market, new leveraged ETFs have been introduced. Named 'RVNL' and 'LCDL', these ETFs base their values on Rivian and Lucid stocks, respectively, representing twice their stock price volatility. Such products, issued by GraniteShares, are designed for high-risk, high-return aiming investors, and are particularly suited for short-term investing. While offering potential for quick gains, investors must also account for the heightened risk associated with these securities.
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[ETF Never Sleep] Rivian and Lucid Price Doubling ETF Emerges… Targeting 'Buy the Dip' Investors - DealsiteGraniteShares lists RVNL and LCDL
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Unfazed by U.S. Market Adjustments, Seohak Ants Go on a Buying Spree of Leveraged ETFs and Tesla - Yonhap InfomaxDespite entering a clear correction phase, South Korean individual investors, known as 'Seohak Ants,' are intensifying their buying of U.S. stocks. The preference for highly volatile leveraged exchange-traded funds (ETFs) and Tesla, a leading tech stock, is particularly pronounced, demonstrating their aggressive investment tendency. According to the Korea Securities Depository on the 24th, the net buying amount of U.S. stocks by South Korean individual investors until the 22nd of this month totaled 4.3 billion dollars (about 6.1 trillion won). This marks an approximately 5.7% increase over the previous month's 4 billion dollars, potentially reaching an all-time high of 4.5 billion dollars by month-end.