Challenges in Korean ETFs and Global Market Volatility
Samsung Asset Management's 'KODEX KOSDAQ Venture' ETF, which recorded the highest returns last year, has plummeted this year due to the downturn in tech stocks, placing it among the worst performers. This ETF is heavily invested in stocks like Nvidia and Tesla, whose price drops have significantly impacted its returns. The sustainability of this strategy remains uncertain, raising concerns among investors.
Similarly, the 'ACE Best Seller in US Stock Market' ETF also experienced significant losses down by 18.62%, largely due to the same reasons. The decline in these tech-heavy ETFs is partly a reaction to their past exceptional performance during last year's technology stock surge. The resulting decrease in fund inflows indicates weakening investor sentiment.
Meanwhile, the increasing volatility in global markets has brought equal-weighted ETFs into the spotlight. For example, the 'Invesco S&P500 Equal Weight ETF (RSP)' showed better resilience, falling only about 4% over the past month compared to an 8% drop in SPY. This approach is viewed as an effective way to reduce over-dependence on specific stocks or sectors, thereby mitigating overall portfolio volatility.
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