"Let's Double with Samsung and SK hynix": Retail Investors Dump Semiconductor ETFs for Samsung and SK hynix Leverage Products

Top Four Net-Bought ETFs: Leveraged Single-Stock Funds for Samsung Electronics and SK hynix
3 Trillion Won Poured In Over a Week, While General Semiconductor ETFs See Net Selling

Recently, individual investors have been selling off general semiconductor exchange-traded funds (ETFs) in large quantities, while actively purchasing single-stock leveraged ETFs for Samsung Electronics and SK hynix. This is interpreted as a strategy to maximize returns by focusing investment on the strong upward momentum of these leading stocks, rather than diversifying across multiple semiconductor stocks.

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In particular, even though Samsung Electronics and SK hynix have shown some weakness recently due to short-term profit-taking, individuals continue to buy leveraged ETFs. This indicates that investors view the price corrections as buying opportunities at lower levels and have strong confidence that these two market leaders will rise further in the future.

According to ETFCheck on June 8, the top four ETFs most heavily purchased by individuals over the past week were the recently listed single-stock leveraged ETFs for Samsung Electronics and SK hynix. The most purchased ETF by individuals was KODEX Samsung Electronics Single-Stock Leveraged ETF, with a net purchase amount of an impressive 1.0972 trillion won. This was followed by TIGER Samsung Electronics Single-Stock Leveraged ETF (844.9 billion won), TIGER SK hynix Single-Stock Leveraged ETF (631 billion won), and KODEX SK hynix Single-Stock Leveraged ETF (612.2 billion won). Despite stagnant stock prices, the total individual investment in these four ETFs alone reached approximately 3.1853 trillion won.

In contrast, there was a clear trend of individuals taking profits and selling off general semiconductor ETFs, which had previously driven the market rally. During the same period, individuals sold KODEX Semiconductor Leveraged ETF worth 695.5 billion won, making it the most net-sold ETF overall. This was followed by TIGER Semiconductor TOP10 Leveraged ETF (-534.3 billion won), TIGER Semiconductor TOP10 ETF (-288.2 billion won), and KODEX Semiconductor ETF (-160.5 billion won), all ranking high on the list of net sales.

This trading behavior among individuals reflects the recent extreme concentration in the market. Although Samsung Electronics and SK hynix have been weak lately, it was entirely these two companies that led the KOSPI index to surpass the 8,000 mark. With these two stocks demonstrating overwhelming price gains and being projected to have the most reliable earnings improvements amid the global artificial intelligence (AI) infrastructure investment cycle, investors appear to have opted for a focused investment in Samsung Electronics and SK hynix.

An asset management company official explained, "Existing semiconductor ETFs also include small- and mid-cap material, component, and equipment stocks that have been sluggish, so during a large-cap-driven rally, returns can be relatively disappointing. Now that single-stock leveraged ETFs are available, individuals are shifting from poorly diversified investments to leveraged products that can deliver twice the returns."

Furthermore, the fact that individuals purchased leveraged ETFs even as Samsung Electronics and SK hynix continued to decline in recent days shows that they are betting on additional gains in these stocks. SK hynix fell for three consecutive days recently, with a total decline of 12.40% over this period. Samsung Electronics dropped 8.74% over two days, June 4 and 5. While these sharp declines have prompted profit-taking and weakness, robust earnings forecasts continue to support the potential for further gains in these two stocks. Kim Daejun, a researcher at Korea Investment & Securities, said, "Semiconductors riding the super cycle are generating tremendous profits and supporting index growth. The 12-month operating profits of Samsung Electronics and SK hynix are expected to increase by about 10% compared to previous forecasts."

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