Business · Markets · 2 hrs ago
Retail investors bought leveraged ETFs as South Korean stocks fell
South Korean stocks fell on most trading days this month, and the Kospi index dropped below 6,000 on October 15.
Over the past week, individual investors bought 812.8 billion won of KODEX Leverage, an exchange-traded fund that aims to return twice the daily move of the Kospi 200.
Because the market declined, KODEX Leverage lost 33.15% in a week, while other leveraged ETFs also posted steep losses.
Institutions took the opposite approach, buying funds designed to gain when markets fall, including KODEX 200 Futures Inverse 2X.
That fund rose 42.86% over the same week, while an inverse fund tied to SK Hynix futures rose 65.69%.
A Shinhan Securities analyst said foreign selling had eased but that a near-term rebound was not yet clear, citing questions about AI investment constraints and the durability of earnings.
Individual investors bought more KODEX Leverage than any other ETF over the previous week, betting on a rise in South Korean stocks.
The fund fell 33.15% over that week as the KOSPI declined on all but three trading days in October.
Institutional investors took the opposite position, buying inverse ETFs that can gain when markets fall.
KODEX 200 Futures Inverse 2X, the most purchased ETF by institutions, rose 42.86% over the week.
The KOSPI fell below 6,000 on October 15 before rising 2.05% to close at 5,668.05 the next day.
- Who
- Individual and institutional investors in South Korea.
- What
- Individuals bought leveraged ETFs betting on rising stocks, while institutions bought inverse ETFs betting on declines.
- When
- Over the week reported on October 18, 2026.
- Where
- South Korea’s ETF market and stock market.
- Why
- The article says individuals bought ETFs that bet on rises and institutions bought ETFs that bet on falls; it does not state their reasons.
Individual investors
Institutional investors
Investment position
Individual investors
Bought leveraged ETFs that aim to rise when their underlying indexes rise.
Institutional investors
Bought inverse ETFs that aim to gain when indexes fall.
Leading ETF purchases
Individual investors
Net bought KODEX Leverage worth 8,128억원 over the week.
Institutional investors
Net bought KODEX 200 Futures Inverse 2X worth 1,785억원 over the week.
The KOSPI briefly recovered to above 7,000.
The KOSPI fell below 6,000.
The KOSPI rose 2.05% to close at 5,668.05.
Maeil Business reported that individuals had bought KODEX Leverage most among ETFs over the previous week, while institutions had favored inverse ETFs.
- Individual investors’ top ETF
- KODEX Leverage; net purchases of 8,128억원
- KODEX Leverage weekly return
- -33.15%
- Institutional investors’ top ETF
- KODEX 200 Futures Inverse 2X; net purchases of 1,785억원
- KODEX 200 Futures Inverse 2X weekly return
- 42.86%
- KOSPI close on October 16
- 5,668.05, up 2.05%
What people are saying
Foreign investors’ selling of shares has eased and they recorded small net buying after nine days, but it is difficult to see this as the start of a rebound right away.