▶ Click here for a larger view
There is a strong wind blowing in the Korean and US markets to invest in exchange-traded funds (ETFs) that seek to achieve a return that is more than double that of the index at the beginning of the year. It is analyzed that this is because of the firm belief in US large tech stocks (big tech).
According to ETF.com and Korea Securities Depository on the 16th, funds were concentrated in the three-fold ETF listed in the US in the US and Korea for two weeks from the 3rd to the 14th. In the US mainland, close to 3 trillion won of new funds flowed into the ‘ProShares Ultra Pro QQQ (TQQQ)’, which tracks the daily return of 3 times the Nasdaq 100 index, creating a sensation. TQQQ also ranks first in net buying of Seohak Ants in Korea. The net purchase of Seohak Ant exceeded 300 billion won, far ahead of the second-placed Nvidia.
In particular, Seohak Ant’s bold bets on US technology and growth stocks stand out. In the US mainland, the largest amount of funds flowed in the first two weeks of the year to the Financial Select Sector SPDR Fund (XLF), a financial stock ETF that can provide stable returns during periods of rising interest rates. However, in addition to TQQQ, Seohak Ant’s US ETF investment in Korea is tripled, including ‘Direction Daily Semiconductor Bull 3X (SOXL)’, ‘Direction Daily Technology Bull 3X (TECL)’, and ‘Direction Daily S&P Biotech Bull 3X (LABU)’. Focused on leveraged products.
Hong Yong-ki, head of ETF & AI division at KB Asset Management, said, “The U.S. market continues to be in a frustrating situation at the beginning of the year, so investment is concentrated on double and triple ETFs to get high returns at once.” “If you invest in ETFs for a long time, it is rather difficult to make a profit,” he pointed out. If the stock price continues to rise after breaking through the box, the leveraged ETF yield is maximized, but it is structurally poorly profitable in the period of repeated fluctuations.
In fact, last year, the Nasdaq rose 21.39%, hitting all-time highs in a row. As a result, the TQQQ rate of return was 91.34%. But this year, the Nasdaq has fluctuated and fell close to 6%. The TQQQ yield fell to -16.01%, which was severely sluggish. The LABU yield also fell to -35.64%. Tae-Hong Kim, CEO of Growth Hill Asset Management, said, “The US Federal Reserve is expected to raise interest rates faster than expected this year. “But it seems risky to invest in a 3x ETF under the current circumstances,” he said.
The sluggish performance of virtual assets such as Bitcoin is also considered to be a factor that accelerates the influx of funds to 3x ETFs. In particular, there is also an analysis that young people such as the MZ (Millennial + Z) generation are investing in the US in search of a triple ETF that is not in Korea instead of virtual assets such as Bitcoin. The belief that the stock prices of large US tech stocks such as Microsoft, Apple, Tesla, and Nvidia will eventually rise even if interest rates rise is also seen as a reason for investing in triple ETFs.
Some analysts say that the Korea Exchange’s ban on the launch of 3x leveraged ETFs in the domestic market is also leading to bold bets by Seohak Ant. In order for domestic investors to invest in double-leveraged/inverse ETFs listed in Korea, they must receive prior training and have a deposit of at least 10 million won. However, there is no such restriction when investing in 3x leveraged ETFs listed in the US.
[문지웅 기자]
[ⓒ 매일경제 & mk.co.kr, 무단전재 및 재배포 금지]
