Trading in leveraged ETFs amid concentration in Samsung Electronics and SK hynix 31%
The share of net assets held by domestic leveraged and inverse ETFs is just 7%, but their share of trading value reaches 31%. In the United States, the figures remain at about 1% of net assets and about 8% of trading value, indicating that the concentration of trading is more severe in South Korea.
7According to the Korea Exchange and the securities industry, domestic leveraged and inverse exchange-traded funds (ETFs) accounted for 31% of total ETF trading value. This figure reveals the concentration of investment and trading.
The share of net assets held by ETFs in the same group is just 7%. There is a significant gap between the share of net assets and the share of trading value.
Leveraged and inverse ETFs in the United States account for about 1% of net assets. Their share of trading value remains at about 8%.
The US also has 2times·3times leveraged ETFs listed. The products themselves exist in both countries.
Industry observers point to a market structure in which funds are concentrated in specific stocks as the reason the controversy has grown more pronounced only in South Korea. The concentration in Samsung Electronics and SK hynix, the so-called “Samjeonix” phenomenon, is cited as an example.
Another factor raised is the high proportion of short-term trading. In an environment with a high volume of short-term transactions, trading values of leveraged products stand out more prominently.
The proportion of trading value accounted for by leveraged and inverse ETFs in South Korea is reportedly approximately 4times that of the United States. This comparison shows differences in market structures between countries.
Discussion continues over the need to examine leveraged and inverse ETFs together with market structure based on related indicators.
Sources: 파이낸셜뉴스 증권
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