Korean retail investors concentrated net purchases in 2x-3x leveraged exchange-traded funds tracking US and Hong Kong stocks during the week of July 3-9, as artificial intelligence semiconductor stocks entered a consolidation phase. Half of the top 10 US stock net purchases by Korean investors consisted of leveraged ETFs, according to Korea Securities Depository data released on July 10. The buying pattern intensified on days when underlying semiconductor stocks declined sharply, with investors using leveraged products to amplify exposure during price dips.
Korean Investors Net Buy $1.55B in SOXL 3x Semiconductor ETF During July 3-9
The Direxion Daily Semiconductor Bull 3X ETF (SOXL), which provides 3x daily exposure to the Philadelphia Semiconductor Index, ranked first among US stock net purchases by Korean investors during July 3-9. Net settlement inflows reached $1.5538 billion (approximately 2.3307 trillion won). The Direxion Daily MSCI South Korea Bull 3X ETF (KORU), a 3x leveraged product tracking Korean equities, ranked second with $138.92 million (approximately 208.4 billion won) in net inflows. The TRADR 2X Long SNDK Daily ETF, providing 2x exposure to SanDisk's daily returns, attracted $112.67 million (approximately 169 billion won).
Other leveraged products dominated the top net purchase rankings. The ProShares Ultra QQQ (QLD), tracking 2x daily Nasdaq-100 returns, recorded $83.37 million (approximately 125.1 billion won) in net inflows. The Roundhill T-Rex 2X Long DRAM Daily Target ETF (RAM), providing 2x exposure to global memory chip companies including Samsung Electronics, SK Hynix, Micron, and SanDisk, attracted $70.05 million (approximately 105.1 billion won).
RAM Memory Chip 2x ETF Attracts $400M in Two Weeks Since Launch
The RAM ETF, which launched in June, saw concentrated buying from Korean investors immediately after listing. From June 26 through July 9, Korean investors net purchased $266.56 million (approximately 400 billion won) of the RAM ETF. The fund's assets under management grew to $751.11 million (approximately 1.1267 trillion won).
Hong Kong SK Hynix 2x Leveraged ETF Sees Buying Surge on Down Days
Korean investors intensified purchases of the CSOP SK Hynix Daily (2X) Leveraged ETF listed on the Hong Kong exchange during SK Hynix share price declines. On July 2, when SK Hynix fell 14.57% from the previous day, the leveraged ETF ranked second in Hong Kong stock net purchases at 2.36 billion won. On July 7, when SK Hynix declined 6.06%, the ETF attracted $6.35 million (approximately 9.53 billion won) in net inflows. On July 8, when the stock fell 5.68%, net inflows reached $12.76 million (approximately 19.14 billion won), ranking first in net purchases. Larger price declines corresponded with increased buying activity in the leveraged product.
Expert Warns Leveraged ETF Losses Magnify as Quickly as Gains
Kim Seok-hwan, Chief Manager of Mirae Asset Securities AI Research Center, stated that leveraged ETFs carry significant risk during volatile market conditions because losses can expand as rapidly as gains. "The market is changing so quickly that it's difficult for individual investors to respond, so if you misjudge the direction, losses can expand accordingly," Kim said. "Leveraged products are investment tools that utilize short-term volatility, so risk management is more important than anything else," he emphasized.
