ETFGI: Retail Investors In South Korea Increased Their Use Of Overseas ETFs During September

During the month of September, 24 of the top 50 overseas stocks (including ETFs and ETNs) purchased by Korean retail investors were ETFs/ETNs, this is an increase from August when 19 overseas ETFs/ETNs were on the list. (source, Korea Securities Depository).    

Twelve of twenty-four ETFs/ETNs on the top 50 list provide leverage or inverse exposure.

Six of the top 10 purchases were in overseas ETFs that provide leverage or inverse exposure. The largest purchase was US$984 million of the Direxion Daily Semiconductor Bull 3X Shares ETF listed in the United States.

Top 10 overseas stocks (including ETFs and ETNs) purchased in Septembe

Source: Korea Securities Depository

The ETFs industry in South Korea had 1,143 products, with 1,143 listings, assets of US$90 Bn, from 33 providers listed on 1 exchange. Year-to-date through end of September, assets invested in the local ETFs have increased by 23.1% from US$73.43 Bn to US$90.41 Bn.

Twenty-four percent of the assets are in actively managed ETFs, 7% are in leverage, 2.4% are in inverse and 4.3% of the assets are in leverage inverse ETFs.

ETFs industry in South Korean asset growth as at end of September