South Korea's High-Net-Worth Investors Sell 14.83B Won in Samsung, SK Hynix, Shift to Semiconductor Leveraged ETFs

On October 26, around 7,900 high-net-worth investors in South Korea with financial assets exceeding 3 billion won each net sold Samsung Electronics and SK Hynix stocks from October 1 to 20, amounting to 5.59 billion won and 9.24 billion won respectively, totaling 14.83 billion won (approximately $11.2 million). Meanwhile, funds shifted toward leveraged ETFs. The KODEX Semiconductor Leveraged ETF saw net purchases of 33.2 billion won during the same period, while the KODEX Leveraged ETF and KODEX 200 received net inflows of 22.5 billion won and 10.5 billion won respectively; the inverse 2x leveraged ETF tracking the KOSPI 200 index saw net selling of 8 billion won.

Data shows that these investors have not fully exited semiconductors or the Korean stock market, but rather shifted from directly holding chip leaders to betting on sector and index upside via leveraged ETFs. However, the daily return-tracking mechanism of leveraged ETFs may amplify losses in volatile markets, exposing investors to higher drawdown risks.

[BlockBeats]