Market volatility increased as individuals flocked to active ETFs and leveraged products
6At the beginning of the month, individual investors went beyond index tracking and concentrated their purchases in active ETFs and leveraged products. Doosan Robotics fell by 6% in a single day in 5 month, while pension funds and foreign investors made some purchases during the semiconductor downturn.16:"
6Since the start of the month, individual investors have continued to actively purchase active ETFs and leveraged products rather than index-tracking ETFs. Several trading platforms have reported more frequent trading in active ETFs and leveraged products. Some investors have been confirmed to have chosen high-risk products in pursuit of short-term returns.
Among individual investors who bought leveraged products, numerous cases of losses from sharp declines have been posted in investor communities. Price adjustment cases involving related products known as “Samjeon-nics” have been reflected in transaction records. The sharing of loss cases is increasing on social media and message boards.
Samsung Electronics and LG have shown strong upward momentum over the past two days. By contrast, small-cap stocks and some thematic stocks have continued to perform relatively poorly. A movement of investors shifting funds toward large-cap stocks and thematic investments has been observed.
Doosan Robotics 6month 5day, in one day 16% decline. The day was accompanied by heightened volatility and increased trading value. Sharp rises and falls in individual stocks affected volatility across the broader market.
When the semiconductor sector declined, pension funds and foreign investors responded with some buying. Institutional buying created differences among individual stocks. Foreign buying was reportedly concentrated mainly in large-cap semiconductor stocks.
A flow of funds toward themes related to SpaceX was also identified. These fund inflows and trading in theme stocks coincided with corrections in small- and mid-cap stocks. The broader market repeatedly saw funds become concentrated in specific themes.
In summary, 6early in the month, individual investors' active and leveraged buying and institutions' stock-specific buying took place simultaneously, widening differences in returns among individual stocks. A trend of increased short-term volatility has been observed. More investors have been checking trading records and disclosures and reviewing their holdings.