Individual investors in South Korea reversed their exchange-traded fund (ETF) buying direction within one day, according to data from KOSCOM and Timefolio Asset Management on the 16th. On the 15th, when the KOSPI surged 6.24%, individuals purchased inverse ETFs and sold leverage products, while on the 16th, when the KOSPI plunged 6.37%, they bought leverage ETFs and dumped inverse products. This contrarian trading pattern—buying on drops and selling on rises—reflects a box-range response strategy to heightened market volatility.
Individual Investors Bought Leverage ETFs on 16th Market Drop
On the 16th, the top net-buy ETF by individual investors was KODEX SK Hynix Single-Stock Leverage with 265 billion won in net purchases. KODEX Leverage recorded 197.4 billion won in net buys, and TIGER SK Hynix Single-Stock Leverage saw 124.1 billion won in net purchases. This occurred on a day when the KOSPI fell 6.37% and SK Hynix dropped 11.53%. Individual investors concentrated purchases on semiconductor leverage products despite the sharp declines. On the same day, the top net-sell product was KODEX 200 Futures Inverse 2X at 136.3 billion won in net sales, followed by SOL SK Hynix Futures Single-Stock Inverse 2X at 96.4 billion won and KODEX Inverse at 46.9 billion won.
Individual Investors Bought Inverse ETFs on 15th Market Surge
On the 15th, individual investors showed the opposite flow. The KOSPI surged 6.24% driven by semiconductor strength. The top net-buy product was KODEX 200 Futures Inverse 2X with 115.3 billion won in net purchases. SOL SK Hynix Futures Single-Stock Inverse 2X ranked third with 37.5 billion won, and KODEX Inverse ranked fifth with 33.6 billion won in net buys. On the same day, the top net-sell product was KODEX SK Hynix Single-Stock Leverage at 382.4 billion won in net sales. KODEX Leverage recorded 302.7 billion won in net sales, and KODEX KOSDAQ 150 Leverage saw 127.9 billion won in net sales, indicating profit-taking on leverage products.
Analysts Warn of High-Risk Single-Stock Leverage Products
SK Hynix single-stock leverage ETFs shifted from the top net-sell position on the 15th to the top net-buy position on the 16th, becoming the central axis of individual investor ETF trading over the two days. Observers note that single-stock leverage and other ultra-high-risk products carry elevated loss risks. If directional predictions prove incorrect in highly volatile markets, losses can multiply, according to market analysts.
FAQ
What did individual investors do on the 15th when the KOSPI surged?
On the 15th, when the KOSPI rose 6.24%, individual investors bought inverse ETFs including KODEX 200 Futures Inverse 2X (115.3 billion won net buy) and sold leverage products including KODEX SK Hynix Single-Stock Leverage (382.4 billion won net sell).
What did individual investors do on the 16th when the KOSPI fell?
On the 16th, when the KOSPI dropped 6.37%, individual investors bought leverage ETFs including KODEX SK Hynix Single-Stock Leverage (265 billion won net buy) and sold inverse products including KODEX 200 Futures Inverse 2X (136.3 billion won net sell).
Why do analysts warn about single-stock leverage ETFs?
Analysts warn that single-stock leverage and ultra-high-risk products can multiply losses if directional predictions prove incorrect in highly volatile markets, according to observations cited in the source.
