Retail investors aggressively bet on a market rebound by piling into leveraged exchange-traded funds (ETFs), even as the KOSPI plunged after briefly breaking through the 8,000 mark for the first time in history.
According to the Korea Exchange and Koscom's ETF Check on Thursday, the most heavily net-purchased ETF by retail investors from November 15, when the KOSPI touched the historic 8,000 level, through the regular session close on November 19 was the KODEX Leverage. The product tracks twice the daily return of the KOSPI 200 index, and individuals net-bought a staggering 537.6 billion won worth over the three trading days.
On November 15 alone, retail investors scooped up 518.3 billion won worth. The KOSPI subsequently tumbled roughly 10% over three trading sessions. Given the nature of the leveraged product, which tracks twice the KOSPI 200 return, individuals who entered at the peak are estimated to have suffered losses approaching 20% in just three days.
Retail investors continued to bet on further gains even amid the downturn. When the KOSPI plunged on November 18, they net-sold 173.8 billion won worth of KODEX Leverage, but bought back 193.2 billion won worth the following day on November 19.
They also invested aggressively in the KOSDAQ's rise. During the same period, individuals net-purchased 248.1 billion won worth of KODEX KOSDAQ150 Leverage. They also accumulated 229.8 billion won worth of KODEX 200.
By sector and theme, KODEX Semiconductor Leverage (217.4 billion won), aimed at further gains in chip stocks Samsung Electronics (005930.KS) and SK hynix (000660.KS), and TIGER U.S. Space Tech (197.2 billion won), reflecting expectations for the listing of U.S. space company SpaceX, ranked among the top net purchases by retail investors.
By contrast, "gop-bus" (inverse 2X) products, which generate returns when the index falls, saw broad selling. During the same period, individuals net-sold 104.8 billion won and 72.3 billion won worth of KODEX 200 Futures Inverse 2X and KODEX Inverse, respectively. The pattern reflects sentiment that the index will ultimately trend upward even if it undergoes a correction.
Profit-taking also emerged in power infrastructure ETFs. KODEX AI Power Core Equipment and TIGER Korea AI Power Equipment TOP3 saw net sales of 59 billion won and 26 billion won, respectively. KODEX 200 Target Weekly Covered Call, a monthly dividend product, was also sold off to the tune of 52.2 billion won.
Meanwhile, the KOSPI continues to slide. As of 9:45 a.m. Thursday, the KOSPI was trading at 7,153.57, down 118.09 points, or 1.62%, from the previous session's close.
The index opened up 0.73% but quickly turned lower in early trading. It later slipped to as low as 7,053.84 during the session, falling below the 7,100 mark for the first time in about two weeks.
