Changes in ETF Investment Trends and Risk Factors

According to a report by the Capital Market Research Institute, approximately 70% of ETFs sold by banks are theme-based products such as AI and semiconductors, potentially posing significant risks to investors. These themed ETFs often include features that automatically liquidate when high return targets are met and are characterized by high volatility, thereby increasing the likelihood of investor losses. As such, there is a need for caution from financial supervisory authorities, and banks should monitor their concentrated sales practices and enhance investor protection measures.
Additionally, as Korean investors increase their investments in U.S. stocks, there is a notable influx of capital into a range of stocks from large companies like Tesla, Nvidia, and Apple to highly volatile small- and mid-cap stocks. Notably, Korean capital has significantly flowed into quantum computing-related stocks such as 'IonQ' and 'Rigetti Computing,' which are considered medium-risk, high-reward investments. Market experts express concerns over these aggressive investment strategies, underscoring the importance of risk management and portfolio diversification.
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Korean Money Emerges as Major Player in Rising US Stocks - Chosun IlboKorean money has emerged as a major player in rising US stocks, capturing 30% of the quantum computing stock IonQ and holding 44% of an ETF tracking Tesla's value twice. With aggressive investments, concerns arise about susceptibility to volatility. As Korean investment in overseas stocks steadily increases, Korean funds are becoming significant players in some soaring US stocks.