Exchange Announces Two Types of 'KOSPI200 TOP 10 Index'

[Asia Economy Reporter Song Hwajeong] The Korea Exchange announced on the 13th that it will release the 'KOSPI 200 TOP 10 Index,' composed of blue-chip stocks from the KOSPI 200, and the strategic index 'KOSPI 200 TOP 10 Leverage Index' on the 14th.

The KOSPI 200 TOP 10 Index is calculated by selecting the top 10 stocks by market capitalization from the KOSPI 200 constituents and weighting them equally. The current index components are Samsung Electronics, SK Hynix, LG Chem, Naver, Hyundai Motor, Samsung SDI, Celltrion, Kakao, Kia, and Hyundai Mobis.

By compressing large-cap stocks that have driven the KOSPI index's rise since COVID-19 into a small group, this index achieves higher returns than the KOSPI and related indices. Additionally, the index selects constituent stocks among those with individual stock futures listed, providing an effective risk management tool for investors operating exchange-traded products (ETPs).

The KOSPI 200 TOP 10 Leverage Index tracks twice the daily return of the KOSPI 200 TOP 10 Index. The Exchange cautioned that while the leverage effect can yield better performance than the original index, there is also an increased risk of volatility, so investors should exercise caution.

An Exchange official stated, "By expanding the lineup of the KOSPI 200 and diversifying ETP products based on large-cap stocks as underlying assets, investors' choices will broaden, and the related market is expected to be revitalized."

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