[Edaily Reporter Park Sun-Yeop ] Domestic equity funds fell by an average of more than 6% in just one week as profit-taking in major semiconductor stocks coincided with a sharp decline in KOSDAQ growth stocks. However, some high-dividend and covered call funds—as well as long-short products that combine buying KOSPI 200 futures with selling KOSDAQ 150 futures—actually rose. Amid the overall market volatility, performance diverged significantly depending on the underlying assets and investment strategies.

According to fund rating agency KG Zeroin on the 12th, domestic equity funds with net assets (aggregated across classes) of 10 billion won or more, and a track record of at least one month, Samsung Asset Management’s “KODEX 200 Long KOSDAQ 150 Short Futures” exchange-traded fund (ETF) took first place with a 5.90% gain. Its one-month return was 7.27%, and its year-to-date return reached 98.94%.
This product invests in the relative performance difference between the two indices by simultaneously buying KOSPI 200 futures and selling KOSDAQ 150 futures. Over the week, the KOSPI 200 fell 4.09%, while the KOSDAQ 150 plummeted 10.28%. Since the decline in the purchased KOSPI 200 was smaller than that of the sold KOSDAQ 150, the gap between the two positions widened, and this long-short strategy resulted in profits.
In second place was KB Asset Management’s “RISE 200 High-Dividend Covered Call ATM” ETF, which rose 3.09% over the week. Next were Samsung Asset Management’s “KODEX High-Dividend Stocks” ETF, up 2.34%; “KODEX Shareholder Return High-Dividend Stocks” ETF, up 2.30%; and Hanwha Asset Management’s “PLUS Share Buyback High-Dividend Stocks” ETF, which recorded a return of 1.48%. Four of the top five performers for the week were products utilizing dividend or shareholder return strategies.
Among the 3,861 domestic equity funds tracked by KG Zeroin, only 48—just 1.2% of the total—posted gains. The number of funds that outperformed the KOSPI stood at 799, amounting to only one in five. As large-cap semiconductor stocks and KOSDAQ growth stocks wavered simultaneously, a significant number of funds were unable to avoid losses, with only a few defensive products making it into the top ranks of returns.
The overall slump in domestic equity funds was largely driven by concerns over a peak in the semiconductor sector combined with an outflow of foreign capital. Amid mounting concerns about short-term overheating following the artificial intelligence (AI) and semiconductor rallies, profit-taking selling emerged, centered on large-cap semiconductor stocks such as SamsungElectronics(005930)and SK hynix(000660). Selling pressure intensified as concerns grew that the growth in semiconductor profits might slow, despite SamsungElectronics’ strong earnings report.
During this period, the KOSPI fell 4.66%. The large-cap index dropped 4.58%, and the mid-cap index fell 6.28%. The KOSDAQ index plunged 8.39%, posting a steeper decline than the KOSPI. Selling pressure spread across growth stocks in general—including semiconductor components, secondary batteries, and biotech—while geopolitical uncertainty in the Middle East and concerns over rising U.S. interest rates further dampened investor sentiment.

Among domestic equity funds, dividend-focused equity funds fared relatively well, falling 3.75% over the week. K200 Index funds fell 4.14%, general equity funds dropped 5.99%, and small- and mid-cap equity funds fell the most, declining 8.36%. By sector, telecommunications rose 2.92% and showed strength, while construction plunged 10.02%, machinery fell 10.37%, and medical and precision instruments plummeted 16.02%.
Domestic bond funds also failed to fully fulfill their role as safe-haven assets. The weekly average return for all domestic bond funds was -0.07%. As yields on government bonds rose across all maturities due to rising international oil prices stemming from tensions in the Middle East and inflation concerns, high-grade bond funds fell 0.63% and medium-term bond funds fell 0.26%. In contrast, ultra-short-term bond funds with short maturities rose 0.07%.
Overseas equity funds also underperformed due to profit-taking in AI-related tech stocks and the impact of the strengthening won. The average return for all overseas equity funds over the week was -4.82%. By region, Asia-Pacific equity funds fell 8.45%, Japanese equity funds fell 7.22%, Chinese equity funds fell 5.97%, and global equity funds fell 5.71%. By sector, healthcare funds fared the best, posting a return of -0.23%.
Among individual overseas funds, products linked to Chinese H-shares stood out for their strong performance. The “KODEX China H Leverage” ETF rose 14.19% to take first place, followed by the “TIGER China Hang Seng Tech Leverage” ETF, up 11.31%, and the “Mirae Asset China H Leverage 1.5” fund, up 8.97%. Of the 5,611 overseas equity funds tracked by KG Zeroin, only 359 posted gains.
Global stock markets also performed poorly overall. On a won-converted basis, the U.S. S&P 500 Index fell 2.41%, the Japanese Nikkei 225 Index dropped 1.44%, and the Euro Stoxx 50 Index declined 1.20%. Only China’s Shanghai Composite Index rose 0.19%, remaining largely flat. The won’s strength against major currencies—as evidenced by the won-dollar exchange rate falling 3.19% over the week—also weighed on the won-denominated performance of overseas funds.
Looking at fund flows, the assets under management (AUM) of domestic equity funds (excluding ETFs) increased by 131.9 billion won over the week to 20.0962 trillion won. In contrast, net asset value decreased by 3.131 trillion won to 59.1461 trillion won due to the market decline. The assets under management for bond funds rose by 584.1 billion won to 32.0149 trillion won, while net assets increased by 567.6 billion won to 31.9578 trillion won. Money market funds (MMFs) recorded a weekly increase of 7.683 trillion won, bringing their total assets under management to 178.2418 trillion won.