"Triple Up or Drop"... Korean Retail Investors Hold Divergent Views on Semiconductor ETFs

SOXL Jumps Six Spots to Take First Place...
Tesla 'Long Position' Recovery Leads the Trend
2030s Increase High-Risk Asset Allocation...
4050s Shift from Stability to Aggression

Kakao Pay Securities analyzed the average returns and top purchased stocks among users who traded U.S. stocks via its platform during April, revealing a surge in interest in semiconductor-related exchange-traded funds (ETFs). Notably, both leveraged and inverse products ranked high on the list, indicating that market outlooks for the semiconductor sector remain divided.

SOXL Jumps Six Spots to Take First Place... Tesla 'Long Position' Recovery Leads the Trend

Kakao Pay Securities users recorded an average return of -2.1% in April, a slight improvement from the previous month’s -2.8%. Amid heightened market volatility, users actively utilized high-risk products, diversifying their response strategies.

The most purchased stock was SOXL, an ETF that delivers three times the daily returns of the ICE Semiconductor Index, climbing six spots from the previous month. This is attributed to recovering investor sentiment following a partial easing of concerns over semiconductor tariffs prompted by President Trump’s tariff policies. At the same time, SOXS, an ETF that provides three times the inverse returns of semiconductor stocks, entered the rankings at fourth place, reflecting contrasting outlooks for the sector.

Tesla’s downward trend, which persisted through March, reversed in April. Tesla (third place) rebounded with a 9% return, and TSLL (second place), an ETF tracking twice the daily returns of Tesla stock, also posted an 8% return, both maintaining high purchase rankings. In contrast, TSLQ (seventh place) and TSLZ (tenth place), which profit from declines in Tesla’s share price, each suffered substantial losses of minus 40%, suggesting that the “short position” strategies popular in March proved challenging.

Additionally, American Rebel Holdings (AREB), which ranked eighth, soared by 145% over the month, emerging as a rapidly rising stock. TQQQ, an ETF offering three times the returns of the Nasdaq 100 Index, newly entered the rankings at fifth place, while iCoreConnect (ICCT) also made its debut in the top ten at ninth place.

2030s Increase High-Risk Asset Allocation... 4050s Shift from Stability to Aggression

Users in their 20s and 30s posted an average return of -2.4%, lower than the overall average of -2.1%. This group aggressively invested in high-risk derivative products such as SOXL, SOXS, TSLL, and TQQQ, continuing strategies that leveraged market volatility.

Even among users in their 40s and 50s, who have typically shown a more conservative investment approach, there was a shift in April as they increased purchases of derivative products like SOXL, SOXS, and TQQQ. Furthermore, sustained buying was observed in individual tech stocks such as Tesla, Nvidia, Palantir, and IonQ. This age group achieved an average return of -1.6%, the best performance among all age brackets.

Kakao Pay Securities commented, “While in March, investment flows focused on positions targeting rises and falls in tech stocks, especially Tesla, April saw a ‘sector rotation’ with the semiconductor sector emerging as the key investment target. The simultaneous rise of SOXL and SOXS in the upper ranks indicates that, rather than having strong directional conviction, more investors are employing diversification strategies amid volatile market conditions.”

More details on Kakao Pay Securities users’ investment trends for April can be found in the “Uselessly Useful Investment News” section, located under the “Discovery” tab in the “Securities” menu at the bottom of the Kakao Pay app.