Business · Markets · 1 day ago
Retail investors shift leveraged ETF buying from Samsung and SK hynix to market indexes
Individual investors in South Korea have sharply changed which leveraged exchange-traded funds they buy.
In July, more than two-thirds of their purchases went to funds tied to Samsung Electronics or SK hynix, but that share fell to 8.9% in September.
Funds that track broad market indexes made up 69.8% of September purchases, while industry and theme funds, including those focused on semiconductors and defense, made up 20.5%.
Leveraged ETFs typically aim to deliver about twice the daily movement of an underlying stock or index, so they can magnify losses as well as gains.
From July 31, regulators required investors buying single-stock leveraged products to hold a cash deposit of 30 million won, up from 10 million won.
The shift came as purchases of single-stock funds fell and investors increasingly bet on the wider market or particular industries instead.
An analyst expects index-tracking funds to remain the leading choice, though the article gives no official forecast or policy change.
South Korean individual investors shifted leveraged ETF buying away from products tied to Samsung Electronics and SK Hynix and toward broad market indexes.
The share of individual buying in single-stock leveraged ETFs fell from 67.8% in July to 8.9% in September.
Leveraged ETFs tracking domestic indexes accounted for 69.8% of individual buying in September, up from 28.0% in July.
Buying in industry- and theme-focused leveraged ETFs, including semiconductor and defense funds, rose from 3.8% to 20.5% over the same period.
The shift coincided with tighter rules on single-stock leveraged products, including a higher cash deposit requirement introduced on July 31.
- Who
- South Korean individual investors.
- What
- They shifted leveraged ETF buying from single-stock products tied to Samsung Electronics and SK Hynix toward domestic market-index and industry- or theme-focused funds.
- When
- The shift was measured from July to September; tighter rules took effect on July 31.
- Where
- South Korea’s market for locally listed leveraged ETFs.
- Why
- The article links the shift to tighter access rules, losses that investors experienced in July, and a move toward betting on a broader market recovery.
This story does not have two clearly opposing sides.
단일종목 레버리지 규제안으로 인해 개인들의 접근성이 5~7월 29일에 비해 제한되고 있으며, 이미 7월 중 폭락을 통해 단일종목 레버리지 리스크를 체험했기 때문에 심리적인 장벽이 생겼다
단일종목 레버리지 ETF 대신 다른 업종들로 순환매가 돌면서 지수는 회복을 하고 있기 때문에 증시 상승 자체에 베팅하는 지수추종형 레버리지로 몰리고 있는 것
Single-stock leveraged ETFs tied to Samsung Electronics and SK Hynix made up 67.8% of individual buying, while domestic market-index funds made up 28.0%.
Financial authorities raised the minimum cash deposit for single-stock leveraged products from 10 million won to 30 million won.
The single-stock share fell to 9.5%, while the market-index share rose to 72.5%.
Single-stock products accounted for 8.9% of individual buying, and market-index products accounted for 69.8%.
- Single-stock share
- 8.9% of individual leveraged ETF buying in September, down from 67.8% in July
- Market-index share
- 69.8% in September, up from 28.0% in July
- Industry- and theme-focused share
- 20.5% in September, up from 3.8% in July
- Cash deposit requirement
- Raised from 10 million won to 30 million won on July 31
- ETF sample
- 62 locally listed leveraged ETFs analyzed
Sources
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