Personal Investors and Leveraged ETF Trading Strategy Shifts After Iran War

Since the outbreak of the Iran war, individual investors are significantly adjusting their trading strategies for listed index funds (ETFs). As market volatility increases, investors are readjusting their portfolios to manage risk.

Before the war, individual investors actively bought KODEX KOSDAQ 150 and KODEX 200, but their popularity has now waned. These funds were favored in January and February, recording net purchases of 30.392 trillion KRW and 19.812 trillion KRW respectively, but disappeared from the net buy lists after March. Instead, investors are now focusing their funds on leveraged ETFs like KODEX KOSDAQ 150 Leveraged, which are seen as relatively stable assets.

Particularly, KODEX KOSDAQ 150 Leveraged continued to attract high attention before and after the war, with about 35 billion KRW in net purchases from individual investors. This can be seen as investors maintaining their pre-war buying tone. Additionally, as expectations for growth industries like semiconductors and secondary batteries strengthen, related leveraged ETFs have also gained favor among individual investors.

In the ETF market, post-war, leveraged and active ETFs reflecting expectations for increased activity in the KOSDAQ market are gaining attention. KOSDAQ-related ETFs have topped the list of net purchases by individuals after the war, indicating investor anticipation of a future market rebound.

Looking ahead, even if market preference for safe assets further increases, this trend may continue. Investors are likely to focus more on medium- to long-term growth potential rather than short-term market uncertainties, employing diversified strategies to manage assets. It is essential to continuously monitor various economic variables and global developments that could lead to shifts in investment patterns.