Retail investors, U.S. long-term bond ETFs 1,580billion won in net selling
As yields on U.S. long-term government bonds 19hit their highest level in years, prices of ETFs linked to U.S. long-term bonds fell to their lowest level since listing. According to data compiled by the Korea Exchange, retail investors were heavy net sellers of long-term bond ETFs, including TIGER U.S.30year Treasury Covered Call Active (H) and others.
Retail investors sold large amounts of exchange-traded funds (ETFs) linked to U.S. long-term government bonds. Yields on U.S. long-term government bonds surged to their highest level in 19years, pushing related ETF prices down to their lowest level since listing. This has made selling by some retail investors particularly pronounced.
The Korea Exchange compiled retail investors’ bond ETF transactions since the start of this year through 22. The results showed that U.S. long-term bond ETFs ranked among the top net sales by retail investors. The figures were released based on data as of 25.
The most heavily sold product was “TIGER U.S.30year Treasury Covered Call Active (H),” from which retail investors net sold 1,580billion won worth. Next, “ACE U.S.30year Treasury Active (H)” recorded net sales of 1,488billion won. Both products are primarily exposed to U.S. long-term government bonds.
“TIGER U.S.30 Treasury bond strip active (synthetic H)” recorded net sales of980 hundred-million-won; “RISE U.S.30 Treasury bond yen exposure (synthetic H)” recorded net sales of445 hundred-million-won. These net sales figures have been tallied since the start of this year. Several long-term bond ETFs ranked among the largest net sales.
“TIGER U.S.30 Treasury covered-call active (H)” is a product with a maturity of20 or more years that tracks the yields on U.S. Treasury bonds while employing a covered-call strategy of selling call options. Since the start of this year, the product3.49 %.
A simultaneous surge in U.S. long-term Treasury yields and decline in ETF prices appears to have led to an increase in individual investors’ stop-loss selling. Exchange data show this. Market participants are checking trading trends using the relevant figures.
Sources: 파이낸셜뉴스 증권
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