Individual investors in South Korea net purchased over 730 billion won in single-stock leveraged exchange-traded funds (ETFs) and exchange-traded notes (ETNs) on the 28th, a day when the KOSPI plunged over 10% and threatened the 6,000-point level in what markets called 'Black Tuesday'. The buying spree focused on products tracking Samsung Electronics and SK Hynix despite steep intraday losses. Financial authorities announced earlier that high-intensity regulations including raising the minimum deposit requirement to 30 million won in cash would take effect starting the 31st to curb speculative overheating in single-stock leveraged products, yet retail investors showed undiminished appetite for high-risk purchases amid the market crash.
SK Hynix Leveraged Products Drew 602.6 Billion Won on the 28th
According to Korea Exchange and Yonhap Infomax ETP periodic trading data (screen number 7131), individual investors net purchased a total of 734.9 billion won worth of single-stock leveraged products (ETFs and ETNs) based on Samsung Electronics and SK Hynix on the 28th. The product attracting the most capital was KODEX SK Hynix Single Stock Leverage, with individuals purchasing 419.9 billion won worth in a single day, making it the top net-purchased domestic listed ETF. The product plummeted 28.43% in one day due to the Hynix crash, yet retail buying surged. TIGER SK Hynix Single Stock Leverage received over 150 billion won (152.3 billion won), bringing total inflows into SK Hynix single-stock leveraged products to 602.6 billion won.
Samsung Electronics Leveraged Products Recorded 132.3 Billion Won Net Buying
Samsung Electronics single-stock leveraged products saw 132.3 billion won in net purchases, centered on KODEX Samsung Electronics Single Stock Leverage (90.2 billion won) and TIGER Samsung Electronics Single Stock Leverage (36 billion won).
Index Leveraged ETFs Saw Increased Bargain Hunting
Beyond single-stock products, bargain hunting spread to index-type leveraged products. Individuals purchased 294 billion won worth of KODEX Leverage, which tracks index gains at 2x, and bought 233.2 billion won worth of KODEX KOSDAQ150 Leverage.
Inverse Products Experienced Profit-Taking Selling
Inverse products that bet on market declines saw unanimous profit-taking selling. The top individual net-sold product was KODEX 200 Futures Inverse 2X with 144.5 billion won net sold in one day. KODEX Inverse (71.4 billion won) and SOL SK Hynix Futures Single Stock Inverse 2X (32.8 billion won) also ranked high in net selling. As stock market crashes sent returns on downside-betting products soaring, investors realized profits and then rotated into leveraged products to target upward rebounds.
FAQ
What did individual investors buy on the 28th during the KOSPI crash?
Individual investors net purchased 734.9 billion won worth of single-stock leveraged ETFs and ETNs tracking Samsung Electronics and SK Hynix on the 28th, despite the KOSPI plunging over 10% on 'Black Tuesday'.
Why did retail investors buy leveraged products during the market crash?
Retail investors viewed the sharp market decline as a buying opportunity and purchased high-risk leveraged products to bet on a rebound, with the largest inflows going to SK Hynix leveraged products totaling 602.6 billion won despite a 28.43% single-day drop in the underlying asset.
