As the domestic stock market has fallen nearly 20%, retail investors are aggressively buying leveraged ETFs, betting on a potential rebound. There is a notable influx into single-stock leveraged ETFs for Samsung Electronics and SK Hynix, as well as a strong interest in the U.S. semiconductor triple-leveraged ETF, indicating a trend of bargain hunting following the market's decline.
According to data from the Korea Exchange and Koscom CHECK, from October 1 to 23, individual investors net purchased a total of 315.4 billion won in 14 single-stock leveraged ETFs related to SK Hynix and Samsung Electronics. Specifically, 226.3 billion won flowed into seven SK Hynix-related ETFs, while seven Samsung Electronics-related ETFs saw an inflow of 89.1 billion won.
Previously, in July, individual investors had net purchased 27.72 trillion won in 14 single-stock leveraged ETFs. However, following regulatory changes that increased the minimum deposit requirement starting July 31, they shifted to net selling. In August and September, they sold off 648.4 billion won and 497.9 billion won, respectively.
By product, individual investors net purchased 152.9 billion won in the KODEX SK Hynix single-stock leveraged ETF this month, making it the 11th highest amount among domestic ETFs. Additionally, the KODEX Leveraged and KODEX Semiconductor Leveraged ETFs saw net purchases of 1.04 trillion won and 256.4 billion won, respectively, indicating a concentrated buying trend in leveraged products.
With the KOSPI experiencing significant declines, some investors believe the drop is excessive and are purchasing leveraged products to maximize potential gains during a rebound. From October 1 to 23, the KOSPI fell by 18.83%, with some analysts suggesting that the recent drop has been overdone.
Domestic investors have also ramped up their purchases of U.S. stocks. According to the Korea Securities Depository's securities information portal, domestic investors net purchased approximately $4.96 billion (about 6.5 trillion won) in U.S. stocks from October 1 to 23. This figure is 4.8 times higher than the total net purchase amount from the previous month and represents the largest amount since January. With trading days still remaining, there is potential for this to surpass the record for the month.
Domestic investors are actively buying leveraged ETFs in the U.S. as well. Among the top 10 net purchases during the same period, four were leveraged ETFs, including the Direxion Daily Semiconductor Bull 3X ETF (SOXL), which tracks the daily returns of an index composed of major U.S. semiconductor companies. The net purchase amount for SOXL was approximately $3.35 billion (about 4.44 trillion won), accounting for about 68% of the total net purchase amount for U.S. stocks.
There is also a trend of domestic investors betting on a rebound in the Korean stock market through U.S.-listed ETFs. They net purchased $300 million worth of the Direxion Daily MSCI Korea Bull 3X ETF (KORU), making it the second highest net purchase among U.S. stocks. This indicates that investors are looking to capitalize on potential gains in the Korean market through both domestic and U.S.-listed leveraged products.
Han Soo-jin, a senior researcher at Samsung Securities, noted, "The recent trend of increasing net purchases of leveraged ETFs indicates that investors are anticipating a rebound in the index amid the sharp decline in the domestic stock market."
According to data from the Korea Exchange and Koscom CHECK, from October 1 to 23, individual investors net purchased a total of 315.4 billion won in 14 single-stock leveraged ETFs related to SK Hynix and Samsung Electronics. Specifically, 226.3 billion won flowed into seven SK Hynix-related ETFs, while seven Samsung Electronics-related ETFs saw an inflow of 89.1 billion won.
Previously, in July, individual investors had net purchased 27.72 trillion won in 14 single-stock leveraged ETFs. However, following regulatory changes that increased the minimum deposit requirement starting July 31, they shifted to net selling. In August and September, they sold off 648.4 billion won and 497.9 billion won, respectively.
By product, individual investors net purchased 152.9 billion won in the KODEX SK Hynix single-stock leveraged ETF this month, making it the 11th highest amount among domestic ETFs. Additionally, the KODEX Leveraged and KODEX Semiconductor Leveraged ETFs saw net purchases of 1.04 trillion won and 256.4 billion won, respectively, indicating a concentrated buying trend in leveraged products.
With the KOSPI experiencing significant declines, some investors believe the drop is excessive and are purchasing leveraged products to maximize potential gains during a rebound. From October 1 to 23, the KOSPI fell by 18.83%, with some analysts suggesting that the recent drop has been overdone.
Domestic investors have also ramped up their purchases of U.S. stocks. According to the Korea Securities Depository's securities information portal, domestic investors net purchased approximately $4.96 billion (about 6.5 trillion won) in U.S. stocks from October 1 to 23. This figure is 4.8 times higher than the total net purchase amount from the previous month and represents the largest amount since January. With trading days still remaining, there is potential for this to surpass the record for the month.
Domestic investors are actively buying leveraged ETFs in the U.S. as well. Among the top 10 net purchases during the same period, four were leveraged ETFs, including the Direxion Daily Semiconductor Bull 3X ETF (SOXL), which tracks the daily returns of an index composed of major U.S. semiconductor companies. The net purchase amount for SOXL was approximately $3.35 billion (about 4.44 trillion won), accounting for about 68% of the total net purchase amount for U.S. stocks.
There is also a trend of domestic investors betting on a rebound in the Korean stock market through U.S.-listed ETFs. They net purchased $300 million worth of the Direxion Daily MSCI Korea Bull 3X ETF (KORU), making it the second highest net purchase among U.S. stocks. This indicates that investors are looking to capitalize on potential gains in the Korean market through both domestic and U.S.-listed leveraged products.
Han Soo-jin, a senior researcher at Samsung Securities, noted, "The recent trend of increasing net purchases of leveraged ETFs indicates that investors are anticipating a rebound in the index amid the sharp decline in the domestic stock market."
* This article has been translated by AI.
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