Trends in the ETF Market Amidst Political Uncertainty
In Seoul, the stock market saw a drop with the KOSPI index closing at 2,581.03 and the KOSDAQ at 734.59. Within the ETF market, inverse products such as 'TIGER Inverse' and 'KODEX Inverse' have hit 52-week highs, capitalizing on the falling KOSPI200 futures and rising US dollar value. The exchange rate climbed beyond 1,430 won per dollar, highlighting the won's depreciation. These movements indicate a strategic focus on products benefiting from the current market's decline and strengthening dollar.
Amid the growing volatility in domestic markets due to political uncertainty, investors are increasingly attracted to parking-type ETFs that promise stable returns. The 'KODEX Money Market Active' by Samsung Asset Management has seen the most inflow, a reflection of investor caution influenced by political risk and concerns over US monetary policy. In times of market instability, such ETFs offer an alternative through their stable interest returns.
Interest in short-term investment products such as Money Market Funds (MMFs), ultra-short-term bond funds, and parking-type ETFs is on the rise. This trend stems from political uncertainty following President Yoon Suk-yeol's declaration of martial law, leading to a significant increase in MMFs and ultra-short-term bond fund subscriptions over the past week. The parking-type ETF market is also experiencing significant inflows, with these products offering flexible investment and withdrawal options and the potential for high returns.
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