KODEX KOSDAQ ETF Series Sees Surge in Individual Net Buying

Individual investors are rapidly flocking to two of Korea's leading KOSDAQ exchange-traded fund (ETF) series. As the KOSDAQ market, which had underperformed compared to the KOSPI earlier this year, has recently shown a sharp upward trend, investor interest in KOSDAQ ETFs is rising.

On December 4, Samsung Asset Management announced that there has been a surge in net purchases by individual investors in both the KODEX KOSDAQ150 and KODEX KOSDAQ150 Leverage ETFs. On December 1 alone, individual net purchases of the KODEX KOSDAQ150 reached 50.3 billion won. The cumulative net purchases by individuals over the three days so far this month amount to 71.1 billion won.

The KODEX KOSDAQ150 ETF tracks the KOSDAQ150 index, which is composed of 150 leading KOSDAQ companies. It is widely used as a representative method for investing in the KOSDAQ index. The net asset value of KODEX KOSDAQ150 currently stands at approximately 1.3708 trillion won, with cumulative net purchases by individuals since the beginning of the year reaching 180.8 billion won.

The KODEX KOSDAQ150 Leverage ETF, which tracks twice the daily return of the KOSDAQ150 index, is showing a similar trend. On December 1 alone, individual investors recorded net purchases of 51.4 billion won, ranking first among all domestic ETFs in terms of individual net purchases. The cumulative net purchases by individuals this month have reached 89.9 billion won.

The shift in individual investor demand toward KOSDAQ ETFs is attributed to expectations that the financial authorities will announce measures to revitalize the KOSDAQ market. Since the beginning of the year, the KOSPI200 index has risen by 79.6%, while the KOSDAQ150 index has only increased by 43.4%. From a medium- to long-term perspective, the KOSDAQ index may appear relatively undervalued. If revitalization measures for the KOSDAQ market are announced, the overall market is expected to recover. As a result, individual investors are continuing to buy the KODEX KOSDAQ150 ETF, which offers the opportunity to invest in the growth of the KOSDAQ market.

Recently, as the rally in technology stocks centered on artificial intelligence (AI) and semiconductors has lost momentum due to fatigue, bio stocks are emerging as the leading sector. ABL Bio, a top constituent of the KOSDAQ150 index, recently signed a technology transfer agreement with Eli Lilly, leading to a surge in its stock price. This optimism is spreading across the entire bio sector. Individual buying continues to flow into the KODEX KOSDAQ150 ETF, which has a high weighting of bio stocks such as Alteogen and Peptron.

Lee Daehwan, manager at Samsung Asset Management, said, "Investor interest is focused on the KOSDAQ, which has been undervalued compared to the KOSPI this year, due to expectations for KOSDAQ revitalization policies and the outlook for growth led by bio stocks." He added, "Individual investors are increasingly interested in the KODEX KOSDAQ150 ETF, which allows easy access to the KOSDAQ market, as well as the KODEX KOSDAQ150 Leverage ETF, which offers leverage strategies depending on investment preferences."

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