"Absolutely Crazy!" South Korean Retail Investors Shift from Seoul to Wall Street: Buying SK Hynix ADRs, Betting on Triple-Leveraged ETFs

Data shows that South Korean retail investors net purchased approximately $4.5 billion in U.S. stocks in July. Of that, $840 million flowed into SK Hynix ADRs, despite a premium of about 10%. The triple-leveraged semiconductor ETF SOXL topped the list of favorites among South Korean investors, with leveraged products occupying four of the top ten buying targets. Analysts point out that South Korean retail investors are "switching venues but not bets," still wagering on the AI theme. The ADR premium and prevalence of leverage are signs of speculative overheating, which could exacerbate localized market volatility.