Business · Markets · 1 hr ago
South Korean investors shift toward money market ETFs amid stock volatility
Money market ETFs had the biggest asset increases among South Korea’s listed ETFs from Oct.
1 to 26.
KODEX Money Market Active rose by 2.36 trillion won in assets, while three of the five biggest gainers were money market active ETFs.
These funds invest in short-term, high-quality debt and are often used to hold cash while investors decide where to invest next.
ETFs tracking the KOSPI 200 and semiconductor shares had the biggest declines, with KODEX 200 down 4.37 trillion won in assets.
The shift came as South Korean stocks swung sharply and struggled to regain an upward trend, prompting some investors to wait on the sidelines.
Analysts still see possible gains in chip stocks, but their views differ: Goldman Sachs lowered its KOSPI target, while local analysts described Samsung Electronics and SK Hynix as undervalued and pointed to possible growth in 2027 and 2028.
South Korean investors moved money into money market active exchange-traded funds as volatile stock markets weakened.
KODEX Money Market Active recorded the largest increase in net assets among locally listed ETFs from Oct. 1 to 26, gaining 2.3641 trillion won.
The five ETFs with the largest net-asset declines all tracked stock indexes or semiconductor shares.
The shift was attributed to investors waiting to see how markets develop after sharp rises and falls.
Securities analysts said Samsung Electronics and SK Hynix shares were significantly undervalued, despite recent market weakness.
- Who
- South Korean ETF investors, including investors in money market active ETFs.
- What
- Money shifted toward money market ETFs as assets fell in domestic index-tracking and semiconductor ETFs.
- When
- Oct. 1–26, 2026.
- Where
- South Korea’s listed ETF market.
- Why
- Volatile markets and repeated sharp rises and falls encouraged investors to wait before choosing investments.
Investors waiting on the sidelines
Securities analysts expecting a recovery in semiconductor stocks
Aspect
Investors waiting on the sidelines
Investors moved money into parking-style money market ETFs amid market volatility.
Securities analysts expecting a recovery in semiconductor stocks
Analysts said Samsung Electronics and SK Hynix shares were significantly undervalued and could rise.
Outlook
Investors waiting on the sidelines
Market volatility led investors to wait and see.
Securities analysts expecting a recovery in semiconductor stocks
Analysts pointed to record earnings, low valuations and shareholder returns as possible support for share prices.
KODEX Money Market Active’s net assets rose by 2.3641 trillion won, while KODEX 200’s fell by 4.3656 trillion won.
Daishin Securities lowered its target prices for Samsung Electronics and SK Hynix but described their shares as excessively undervalued.
Yonhap reported that money market active ETFs ranked among the largest gainers in net assets.
- KODEX Money Market Active
- Net assets increased by 2.3641 trillion won from Oct. 1 to 26
- RISE Money Market Active
- Net assets increased by 534.2 billion won
- KODEX 200
- Net assets decreased by 4.3656 trillion won from Oct. 1 to 26
- TIGER Semiconductor TOP10
- Net assets decreased by 3.2986 trillion won
- Goldman Sachs KOSPI 12-month target
- Cut from 12,000 to 9,000, a 25% reduction
What people are saying
Samsung Electronics and SK Hynix are in an exceptionally undervalued phase comparable to the financial crisis, based on their current price-to-earnings ratios.
Samsung Electronics and SK Hynix shares are excessively undervalued at current prices, and we expect a widening supply-demand gap and higher earnings forecasts, with growth driven by prices in 2027 and volumes in 2028.