[Edaily Reporter Kwon Oh Seok ] Foreign and retail investors took diametrically opposed trading approaches regarding exchange-traded funds (ETFs) on the domestic stock market this month. While foreign investors focused on buying “leveraged” products—which yield double the returns when stock prices rise—retail investors snapped up “inverse” products, which bet on a decline in the index.

According to the Korea Exchange and Koscom CHECK on the 27th, the top ETF in terms of net foreign buying from the 1st to the 23rd was the “KODEX Leverage.” The net purchase amount totaled 214.4 billion won. This product tracks twice the daily price fluctuation of the KOSPI 200 Index.
Foreign capital also flowed heavily into leverage ETFs focused on semiconductor stocks. The “KODEX SK Hynix Single-Stock Leverage” (157 billion won) and the “TIGER SK Hynix Single-Stock Leverage” (110.4 billion won) ranked among the top in terms of foreign net purchases. Trading in single-stock leverage products had slowed since late July, when financial authorities significantly raised the minimum deposit requirement from 10 million won to 30 million won; however, analysts suggest they have recently become a target for foreign investors, driven by the strong performance of major semiconductor stocks.
In contrast, retail investors deployed funds amid the stock market decline. Excluding ETFs tracking major overseas indices, the domestic-listed product with the highest net buying by retail investors was the “KODEX 200 Futures Inverse 2X” (121.7 billion won). This is a so-called “inverse leveraged” product that tracks the daily return of the KOSPI 200 futures index in the opposite direction at twice the rate. Retail investors also made net purchases of 100.5 billion won worth of “KODEX Inverse,” reinforcing expectations of a decline in the index.
Conversely, retail investors sold 317.5 billion won and 222.5 billion won worth of the “KODEX Leverage” and “KODEX SK Hynix Single-Stock Leverage” funds, respectively—both of which were heavily bought by foreign investors. This represents the second-largest net selling amount after the “KODEX 200” (-410.2 billion won).
In this month’s return showdown, foreign investors emerged as the clear winners. As the KOSPI 200 index rose 5.06% during this period, the KODEX Leverage—primarily held by foreign investors—posted a return of 9.24%. In contrast, the KODEX 200 Futures Inverse 2X, in which retail investors heavily invested, fell 12.99%, resulting in losses.