Korean retail investors shifted from domestic semiconductor leveraged ETFs to US index ETFs during May 10-16, according to ETF CHECK data. The move followed a sharp KOSPI decline that saw the index fall 19.53% month-to-date through May 16. Individual investors net purchased 161.1 billion won of TIGER US S&P500 ETF during the period, the largest individual net purchase among all ETFs. The shift occurred as Samsung Electronics and SK Hynix dropped 18.92% and 28.05% respectively, prompting investors to seek diversification in US markets where the S&P500 gained 0.68% over the same timeframe.
Korean Investors Net Purchase 161.1 Billion Won of US S&P500 ETF
Individual investors net purchased 161.1 billion won of TIGER US S&P500 ETF from May 10-16, the largest individual net purchase among all ETFs, according to ETF CHECK. KODEX US Nasdaq100 recorded 98.6 billion won in net purchases, ranking third, while KODEX US S&P500 saw 81 billion won in net purchases (fourth) and TIGER US Nasdaq100 recorded 70.2 billion won (sixth).
US index ETFs provide diversified exposure to global technology giants including Apple, NVIDIA, Microsoft, Amazon, and Meta across various sectors, reducing volatility compared to KOSPI where Samsung Electronics and SK Hynix account for over half the index weight.
Semiconductor Leveraged ETFs Record 229.8 Billion Won Outflow
Individual investors net sold 229.8 billion won of KODEX Samsung Electronics single-stock leveraged ETF during May 10-16, the largest individual net sale among all ETFs. TIGER SK Hynix single-stock leveraged ETF recorded 115.7 billion won in net sales (second), and SOL AI Semiconductor TOP2 Plus saw 88.8 billion won in net sales (third).
These products had attracted concentrated individual buying through the previous month before the semiconductor stock decline triggered the reversal.
US Indices Outperform KOSPI During May Decline
The Nasdaq100 index declined 2.63% during the May 10-16 period, while the S&P500 index gained 0.68%, according to market data. This contrasted with KOSPI's 19.53% decline month-to-date through May 16.
Korean investors net purchased $1.9476 billion (approximately 2.9 trillion won) of US stocks through May 17, approximately 3.1 times the previous month's net purchase of $632.96 million, according to Korea Securities Depository.
Analysts Project Extended Consolidation Through Year-End
Shin Seung-jin, Samsung Securities researcher, stated: "KOSPI recently fell approximately 25% from its monthly high. Multiple news items including Meta's cloud business announcement, Apple's exploration of Chinese semiconductor purchases, China CXMT's IPO success, and the emergence of Kimi AI model are simultaneously shaking investor sentiment."
Kim Jun-young, iM Securities researcher, stated: "Rather than the index undergoing correction all at once, there is a high possibility that an exploration period will continue through year-end as the market moves sideways in a box range while examining whether it can break through the 10,000 level."
FAQ
What did Korean investors net purchase during May 10-16?
Korean individual investors net purchased 161.1 billion won of TIGER US S&P500 ETF during May 10-16, the largest individual net purchase among all ETFs according to ETF CHECK data.
Why did investors sell semiconductor leveraged ETFs?
Investors net sold 229.8 billion won of KODEX Samsung Electronics leveraged ETF and 115.7 billion won of TIGER SK Hynix leveraged ETF during May 10-16 as Samsung Electronics and SK Hynix declined 18.92% and 28.05% respectively during the KOSPI's 19.53% month-to-date decline through May 16.
How did US indices perform compared to KOSPI?
The S&P500 index gained 0.68% and the Nasdaq100 index declined 2.63% during May 10-16, while KOSPI fell 19.53% month-to-date through May 16 according to Korea Exchange data.
