Shifts in the Domestic ETF Market and Investor Trends
Despite a recent downturn in the domestic stock market, individual investors are showing significant interest in leveraged ETFs and have been purchasing them in large quantities. This behavior suggests an expectation that the market adjustment is temporary and will eventually recover. Notably, substantial capital inflows are observed in 'KODEX Leverage' and 'KODEX KOSDAQ150 Leverage,' whereas inverse ETFs are experiencing outflows. This trend is influenced by expectations of eased tax reforms and shareholder value enhancement policies.
Meanwhile, foreign investors are preparing for a downturn in the KOSPI by purchasing inverse ETFs, while simultaneously selling leveraged ETFs due to similar concerns. Institutional investors are adopting comparable strategies, marking a stark contrast to individual investors. Although the KOSPI index has seen sporadic rebounds, the scale of foreign net purchases is declining. This situation, coupled with downward revisions in KOSPI forecasts, has increased the market uncertainty.
Furthermore, following the government's announcement on the taxation of dividend income, volatility in the domestic high-dividend ETF market has intensified. The tax reforms fell short of expectations, reducing the appeal of dividend stocks and constricting investor sentiment towards financial securities included in ETFs. Experts recommend a selective approach, particularly towards companies without major shareholders.
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