Retail Investors Expand Bets on KOSPI Decline
KOSPI inverse ETFs, drawing attention as a downside investment strategy to prepare for a correction after a sharp rally Find out why individual investors are choosing this option in a market where volatility has increased after the surge
As the KOSPI approaches the 7,000 level, interest is growing among individual investors in products that invest in market declines. This is being interpreted as a move reflecting concerns about a possible correction after the stock market rose sharply in a short period.
According to the Korea Exchange, on the 1st, the KOSPI closed at 6,598.87, down 1.38% from the previous trading day, ending its streak of record highs for the third straight day. Concerns about overheating have grown amid the recent sharp rise in the index, and the volatility index has also turned upward again.
Last month, the ETF that individual investors net bought the most was 'KODEX 200 Futures Inverse 2X,' a representative product for betting on declines. However, as the KOSPI rose significantly, the returns of the product were sharply weak, and some inverse products even triggered conditions for early liquidation. In the securities industry, while raising the possibility of a weak market in May, there is also a cautious view that, given the recent large gains, shortterm correction potential and market trends should be considered together.