Korean retail investors net purchased over 34 trillion won in Samsung Electronics and SK Hynix stocks from June 16 to July 16, according to Korea Exchange data released July 20. The buying spree occurred as foreign investors sold 37.45 trillion won in the same two stocks during the period. Retail investors simultaneously allocated 5.64 trillion won to four major single-stock leveraged ETFs tracking the semiconductor giants, reflecting expectations of a semiconductor industry recovery amid heightened market volatility.
Retail Investors Net Purchase 34 Trillion Won as Foreigners Exit
From June 16 to July 16, retail investors net purchased 13.18 trillion won in Samsung Electronics and 21.06 trillion won in SK Hynix, totaling 34.24 trillion won, according to Korea Exchange data. During the same period, foreign investors net sold 15.53 trillion won in Samsung Electronics and 21.92 trillion won in SK Hynix. Retail investors absorbed the majority of foreign profit-taking, supporting the price stability of the two semiconductor stocks.
Leveraged ETF Inflows Reach 5.64 Trillion Won
Retail investors net purchased 5.64 trillion won across four major single-stock leveraged ETFs during the same period. KODEX Samsung Electronics Single Stock Leverage received 1.17 trillion won, while TIGER Samsung Electronics Single Stock Leverage attracted 396 billion won. KODEX SK Hynix Single Stock Leverage saw 2.74 trillion won in inflows, and TIGER SK Hynix Single Stock Leverage recorded 1.33 trillion won in net purchases.
The leveraged ETF purchases represented approximately 16% of the underlying stock purchases. An asset management industry official stated, "Retail investors are increasingly using single-stock leveraged ETFs not only for short-term trading but also as a complement to holding the underlying stocks. As investment sentiment strengthens for major large-cap stocks, capital flows into related ETFs as well."
Korea's Single-Stock ETF Trading Concentration Exceeds US Levels
Korea's single-stock leveraged ETF trading concentration is higher compared to major overseas markets. Yeom Dong-chan, a researcher at Korea Investment & Securities, stated, "In the US, single-stock leveraged ETF trading volume is about 5% of the underlying asset's trading volume, whereas in Korea it reaches 20-30%. Even considering that these products are in their early listing phase, the high trading proportion is something the market should pay attention to."
FAQ
What did Korean retail investors purchase from June 16 to July 16?
Korean retail investors net purchased 34.24 trillion won in Samsung Electronics (13.18 trillion won) and SK Hynix (21.06 trillion won) stocks, and an additional 5.64 trillion won in four major single-stock leveraged ETFs tracking these stocks, according to Korea Exchange data.
How does Korea's single-stock leveraged ETF trading compare to the US?
Yeom Dong-chan from Korea Investment & Securities stated that in the US, single-stock leveraged ETF trading volume is approximately 5% of the underlying asset's trading volume, while in Korea it reaches 20-30%.
