Leveraged ETF Rotation Fuels 30% Jump in Korea Small Caps

Imagine two teams in a race: big companies and small companies.

For a long time, people only bought games about big companies, especially the ones that make computer chips.

The government made new rules that made it harder to buy special tools that bet on those chip companies.

So the people who like exciting stock trading moved their money to the small-company team instead.

Because lots of money came in at once, the small companies' score went way up—over 30% higher than their worst day recently.

On Monday, the small-company index jumped almost 7% in just one day.

The stock exchange had to pause some trading because things were moving so fast.

Earlier, a big scare about computer intelligence made the big-company index fall almost 40%.

Now smaller companies are doing better than big ones for the first time since the year 2000.

A money expert at Shinhan Securities says these exciting-trade fans are expected to come back to the small companies.