Gopbeoseu Cherry Blossom Ending?

Stock Market Cruises with Spring Breeze
Inverse Leveraged ETFs Continue Negative Streak

On the 16th, when the KOSPI index surpassed the 3,200 mark during the session, dealers were working in the dealing room of Hana Bank in Euljiro, Seoul. The KOSPI started at 3,194.08, down 0.25 points (-0.01%) from the previous session, and is showing an upward trend. Photo by Moon Honam munonam@

[Asia Economy Reporter Junho Hwang] Recently, as a spring breeze blows through the stock market, investors in Gopbus (Gopbagi + Inverse) are wearing a gloomy expression.

According to financial information firm FnGuide on the 19th, the overall return of ETFs betting on the decline of the KOSPI 200 index showed a -2.16% return over the past week. Over the past month, it was -5.94%. An inverse ETF refers to an ETF that tracks the daily fluctuation of the underlying index in the opposite direction. If the KOSPI 200 rises by 1%, it falls by 1%. Gopbus applies twice the index fluctuation. This means that losses double when the stock market rises.

Last month, as market interest rates rose, represented by the US 10-year Treasury yield, volatility in the KOSPI increased, causing those who invested in the market's decline to suffer significant losses. The representative Gopbus, Samsung Asset Management's KODEX 200 Futures Inverse 2X, showed a return of -8.94% over the past week. Since the beginning of the year, the return reached -22.97%. Mirae Asset Management's TIGER 200 Futures Inverse 2X also posted returns of -8.9% and -22.86%, respectively.

Since the beginning of this month, Federal Reserve (Fed) officials, the central bank of the United States, made skeptical remarks about raising the base interest rate despite the sharp rise in market interest rates, stabilizing market interest rates. This acted as a positive factor for the stock markets in the US and South Korea. On the other hand, it worked as a headwind for Gopbus investors who invest in the KOSPI 200 index, which contains 200 representative KOSPI stocks. If the stock market's upward trend continues, the magnitude of this headwind is expected to increase further.

An asset management industry official said, "As the stock market's characteristics have recently changed, the trading volume of inverse and Gopbus ETFs has clearly decreased," adding, "It is also analyzed that risk-taking investors, feeling tired of reduced market volatility, have shifted to Bitcoin, which is experiencing a renewed upward trend."

This content was produced with the assistance of AI translation services.