Analysis of Top ETF Net Purchases by Buyer Type
Foreigners and Institutions Buy Leveraged ETFs Betting on Index Rise
Meanwhile, Individuals Purchase Inverse ETFs
Amid a recent slowdown in the stock market's upward momentum, forecasts for the index vary depending on the type of buyer. Institutions and foreigners expect the index to rise, while individual investors anticipate a decline.
According to the Korea Exchange on the 7th, an analysis of the top net purchases of exchange-traded funds (ETFs) by each buyer type over the past month revealed that institutions and foreigners have been buying leveraged ETFs heavily, betting on a rise in the index. Institutions purchased the most KODEX KOSDAQ150 Leverage over the past month, with net purchases amounting to 414.2 billion KRW. Following that, KODEX Leverage (232 billion KRW) ranked second in net purchases. Among the top 10 net purchases by foreigners were KODEX Leverage (16.6 billion KRW), KODEX KOSDAQ150 Leverage (15.4 billion KRW), TIGER Leverage (13.6 billion KRW), and TIGER 200 Futures Leverage (13.5 billion KRW). While foreigners bought a lot of leveraged ETFs, they also purchased KODEX 200 Futures Inverse 2X (25.1 billion KRW).
On the other hand, individual investors bought KODEX 200 Futures Inverse 2X the most, with net purchases of 185.2 billion KRW, and also net purchased KODEX KOSDAQ150 Futures Inverse for 114.7 billion KRW. Betting on a decline in the index, individuals net sold 3.9148 trillion KRW in the stock market over the past month.
There were clear differences in preferred ETFs by buyer type. Institutions mainly bought thematic ETFs, foreigners preferred index ETFs, and individuals favored interest rate ETFs.
Institutions purchased many thematic ETFs that invest in specific industries, especially semiconductors. KODEX Semiconductor, TIGER Fn Semiconductor TOP10, and TIGER U.S. Philadelphia Semiconductor Nasdaq were among the top net purchases. Additionally, institutions bought KODEX Automobile and KODEX Secondary Battery ETFs, showing a stronger focus on thematic ETFs compared to foreigners or individuals.
Foreigners mainly held index ETFs. Except for three ETFs?TIGER U.S. Philadelphia Semiconductor Leverage (synthetic), TIGER China Electric Vehicle SOLACTIVE, and KODEX U.S. Big Tech 10 (H)?all of the foreigners' top net purchases were index ETFs.
Among individuals' shopping lists, interest rate ETFs stood out. Interest rate ETFs are parking-type products where surplus funds are temporarily placed; these parking ETFs serve as both waiting funds for investment and products seeking short-term profits. As the stock market has recently shown sluggish trends, individual investors' buying momentum has concentrated on parking ETFs that can yield short-term returns. Individuals net purchased TIGER 1-Year Bank Negotiable Certificate of Deposit Active (synthetic) for 153.8 billion KRW and KODEX CD Rate Active (synthetic) for 106.7 billion KRW over the past month. Additionally, with the recent strength in the U.S. stock market, individuals also bought many U.S.-related ETFs. TIGER U.S. S&P 500, TIGER U.S. Dividend Dow Jones, ACE U.S. 30-Year Treasury Active (H), TIGER U.S. Dividend +7% Premium Dow Jones, and TIGER U.S. Nasdaq 100 were among the top net purchases. A source from the asset management industry said, "As the recent stock market rally has slowed and volatility increased, demand from individual investors for parking-type or dividend-type ETFs that can provide stable returns appears to be growing."
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