Increase in Leveraged ETF Purchases and Market Trend Analysis
In the South Korean stock market, individual investors are marking a four-day streak of net selling domestic stocks while actively purchasing leveraged ETFs. The 'KODEX KOSDAQ150 Leveraged' and 'KODEX Leveraged' ETFs are particularly favored. Despite foreign investors' heavy selling, institutional buying has supported the indices, with KOSPI and KOSDAQ indices rising by 1.02% and 2.17%, respectively. Analysts suggest that the current stock market is close to historical lows and note that institutional year-end program buying is having a positive impact, though they advise caution when bottom-fishing.
Moreover, amid market volatility, individual investors are showing heightened interest in leveraged products due to potential high returns. However, leveraged investment carries high risks and can incur additional costs, necessitating pre-investment mandatory education, which has been implemented since 2020. Failing to complete this education could result in missed opportunities for some investors. Similar trends of rising interest in leveraged products are also observed overseas.
Related ETF
Related News
Sold Stocks and Bought Leveraged ETFs…Retail Investors Bet on Market RiseIndividual investors are buying leveraged exchange-traded funds (ETFs) that bet on index rises. This is in contrast to their four consecutive days of net selling in the stock market. Experts interpret this as investors shifting to ETFs that track index movements due to increased volatility by stock. On the 11th, the KOSPI index rose by 1.02% ...
Related ETF
Individual Investors Selling Stocks, Buying Leveraged ETFs...Will Panic Selling Ease? - Financial NewsIndividual investors are purchasing leveraged exchange-traded funds (ETFs) betting on index rises. This contrasts with their continued net selling in the stock market for four consecutive days. Experts interpret this as a move towards ETFs that follow index trends due to increased volatility in individual stocks. On the 11th, KOSPI..
Related ETF
"Life is a One-Shot"... Retail Investors Learn About Leverage in a Roller-Coaster Market [Money & Talk] - Korea Economic Daily"Life is a One-Shot"... Retail investors make risky bets in a volatile market, with over 100,000 enrolling in leverage courses this year. Leverage ETFs in KOSDAQ and KOSPI dominate individual net purchases. High risk, high return should be taken into account.
Related ETF