ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs industry, reported today that 21 of the top 50 overseas securities purchased by Korean retail investors in July 2026 were U.S.-listed ETFs. This compares with 22 U.S.-listed ETFs among the top 50 overseas securities purchases in June, May, and April 2026, indicating continued strong investor demand for ETF products despite a modest decline in representation.
In dollar terms, Korean retail investors purchased US$12.61 billion of U.S.-listed ETFs in July 2026. While this remains a significant level of investment activity, it is below the 2025 monthly peak of US$15.85 billion recorded in October, highlighting some moderation in buying activity from record levels. (All dollar values in USD unless otherwise noted)
Highlights
- Korean retail investors purchased US$12.61 billion and sold US$6.95 billion of the top overseas ETFs in July 2026.
- Twenty-one of the top 50 overseas securities purchased by Korean retail investors in July were U.S.-listed ETFs.
- More than half of these ETFs (11 of 21) provided leveraged or inverse exposure, highlighting investors' continued interest in tactical and high-conviction trading strategies.
- The Direxion Daily Semiconductor Bull 3X Shares ETF (SOXL) was the most purchased overseas ETF, attracting US$7.87 billion in gross purchases during July.
- The Direxion Daily Semiconductor Bull 3X Shares ETF (SOXL) was also the most sold overseas ETF, with US$4.08 billion in gross sales during the month.
- Despite significant profit-taking activity, the Direxion Daily Semiconductor Bull 3X Shares ETF (SOXL) recorded the largest net purchase settlement among overseas ETFs, with net inflows of US$3.79 billion in July.
Korea has become one of the most closely watched leveraged ETF markets globally following the launch of its first single-stock leveraged and inverse ETFs linked to Samsung Electronics and SK Hynix in May 2026. The products attracted extraordinary retail investor demand, with more than 100,000 investors completing mandatory training before launch and retail trading volumes rapidly reaching trillions of won.
However, the rapid growth of these products coincided with heightened volatility in Korean semiconductor stocks and the broader KOSPI market. Regulators became concerned that the daily rebalancing requirements of leveraged ETFs were amplifying market moves and increasing risks for retail investors.
In response, the Financial Services Commission (FSC) introduced a series of measures in July 2026, including tripling the minimum investment requirement from KRW 10 million to KRW 30 million, restricting the use of securities as collateral, suspending new product launches, banning promotional activity, and considering limits on investor exposure to these products.
The regulatory intervention has significantly reduced trading activity and shifted investor assets toward broader index-based leveraged ETFs. Nevertheless, leveraged and inverse ETFs remain highly active trading tools, particularly during periods of heightened volatility in Samsung Electronics and SK Hynix shares.
Total Amount of top overseas ETFs purchased by Korean retail investors by month
Source: Korea Securities Depository
Total Amount of top overseas ETFs sold by Korean retail investors by month
Source: Korea Securities Depository
Total Amount of top overseas ETFs net purchase settlements by Korean retail investors by month
Source: Korea Securities Depository
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