Foreign investors, 5have bought more “inverse” ETFs than any other type since the month
Since the month 5the domestic ETF with the largest increase in foreign holdings has been an “inverse” product that bets on a decline in the index. According to the tally, “KODEX 200Futures Inverse 2X” ranked 1, while “KODEX Inverse” ranked 3. Some analyses say the rapid growth of single-stock leveraged ETFs has generated mechanical hedging demand.
Since the month 5the product most purchased by foreign investors among domestically listed exchange-traded funds (ETFs) has been an inverse ETF that bets on a decline in the index. From an investor perspective, the fact that inverse ETFs have risen to the top ranks of purchases serves as a signal for gauging the direction of supply and demand.
According to the ETF foreign ownership change tally (screen number 7135), the largest increase in foreign holdings over the same period, ranked 1, was “KODEX 200Futures Inverse 2X,” while the increase ranked 3 was “KODEX Inverse.” The rankings and product names are presented exactly according to the tallying criteria.
The tally alone indicates that some foreign capital appears to have bet on a decline in the domestic stock market. There is another view. The rapid expansion of the product category following the introduction of single-stock leveraged ETFs is analyzed as having created mechanical hedging volume for leveraged positions.
Single-stock leveraged ETFs are a group of products introduced to encourage foreign capital inflows. This tally raises the point that some trading structures have changed since their introduction.
The tally and related analysis present two possible explanations for this flow of funds. One is directional bets by foreign investors, and the other is hedging demand resulting from the expansion of leveraged products.
The related tally is based on results compiled by trading date. For detailed figures and periods, refer to the tally of changes in foreign ownership of ETFs.
Sources: 연합인포맥스
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