Individual Investors Aggressively Invest in Leveraged ETFs

Recently on the Korean stock market, individual investors have been actively investing in leveraged ETFs with the expectation that the KOSDAQ150 and KOSPI200 indices will rise. Key purchases included KODEX KOSDAQ150 Leverage and KODEX Leverage. Conversely, there was a strong sell-off in products like KODEX 200 Futures Inverse 2X, which benefit from market declines. Experts are suggesting potential short-term rebounds amid the excessive market downturn, recommending profit-taking strategies.
This pattern of investing by individuals is reminiscent of behavior seen during past financial crises, with the KOSPI index currently having fallen to a PBR of 0.85 times. Some analysts cite concerns over trade tensions following President Trump's election and worries about Samsung Electronics' technology capabilities as contributing factors to the market's decline. Amidst these uncertainties, individual investors appear committed to acquiring leveraged ETFs with hopes of a market rebound.
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When institutions profit from leveraged ETFs, retail investors bet on the 'rising market'... Who will smile at the end of the year? - Money TodayAmid the sluggish trend of KOSPI and KOSDAQ, it has been revealed that individual investors have invested approximately 900 billion KRW in ETFs (Exchange Traded Funds) that yield profit when major domestic indices rise. Experts agree that KOSPI and KOSDAQ are undervalued but hold conflicting views on the future stock market outlook. According to Koscom ETF Check as of the 22nd, individuals have most frequently purchased ...
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