"Tired of Constant Buying and Selling"... Where SamjeonNix Investors Are Turning [Click eStock]

Funds Flocked to SamjeonNix Leveraged ETFs After Their Launch

June Rebalancing Could Offer Opportunity for Weight Adjustment

Rising Expectations for Semiconductor ETFs Excluding SamjeonNix

These days, the hottest name in the stock market is undoubtedly "SamjeonNix" (a portmanteau of Samsung Electronics and SK hynix). This trend has also manifested in the exchange-traded fund (ETF) market, with a notable concentration of investments in SamjeonNix. In particular, the launch of single-stock leveraged ETFs with Samsung Electronics and SK hynix as underlying assets has intensified this capital influx. However, some experts predict that this concentration will soon reach its peak.

On June 16, Mirae Asset Securities diagnosed that the capital inflow had dramatically increased following the listing of Samsung Electronics and SK hynix leveraged ETFs on May 27. In the 12 trading days since the listing of 14 single-stock leveraged ETFs, cumulative trading volume reached 92.3 trillion won. This accounted for 27% of the total ETF market trading volume of 347 trillion won (excluding single-stock ETFs) and 12% of the total individual stock trading volume of 769 trillion won during the same period.

Individual investors also showed strong buying activity. Except for June 9 and 12, net purchases have continued since the listing, with over 8 trillion won flowing in over 12 trading days. Approximately 3.5 trillion won was concentrated in the Samsung Electronics leveraged ETF, and about 4.5 trillion won in the SK hynix leveraged ETF.

The concentration within the ETF market has also become more pronounced. From the beginning of this year until May 26 (before the listing of single-stock leveraged ETFs), the net buying volume by individual investors in semiconductor industry ETFs was around 6.9 trillion won. During the same period, dividend and style ETFs saw inflows of 5.6 trillion won, and small- and mid-cap (KOSDAQ) ETFs received 4.9 trillion won.

However, in just the 12 trading days after the leveraged ETFs were listed, semiconductor industry ETFs saw an inflow of 6.4 trillion won. In contrast, all other Korea equity ETFs combined attracted only 1.5 trillion won during this period.

Concentration of funds was also observed within semiconductor ETFs. Since the listing of "SamjeonNix" leveraged ETFs, there was a net outflow of 2.2 trillion won from existing semiconductor leveraged ETFs. The existing Semiconductor TOP10 ETF and semiconductor industry-wide (KRX Semiconductor Index) products also saw net outflows of 300 billion won and 400 billion won, respectively.

In contrast, the TOP2 series ETFs, which maximize exposure to "SamjeonNix," saw net inflows of 1.3 trillion won. Jae-Hong Yoon, a researcher at Mirae Asset Securities, explained, "In a market environment where Samsung Electronics and SK hynix are relatively strong due to concentrated demand, investors have responded by moving to ETFs with high allocations to these two stocks." He added, "In particular, funds invested through retirement pensions and pension savings accounts—where leveraged ETFs cannot be included—appear to have been concentrated in these products."

This trend has led to an outflow of funds from semiconductor stocks other than SamjeonNix. While SamjeonNix has such a large market capitalization and participation from foreign and other investors that ETF flows have a limited impact, other semiconductor stocks are different. When ETF funds are withdrawn, these stocks can face greater supply and demand pressures. This has also contributed to performance disparities resulting from the concentration of investments.

However, there are predictions that these capital flows may shift somewhat in the future. This is because new inflows into single-stock leveraged ETFs cannot continue indefinitely.

Researcher Yoon noted, "Additional new buying is likely to be limited, especially since leveraged products tend to be traded frequently in the short term, making it structurally difficult for funds to accumulate continuously." He added, "Funds may continue to flow steadily into ETFs eligible for pension accounts, particularly into covered call or hybrid equity-bond products, where the focus is on dividends and long-term holding."

The regular ETF rebalancing in June is another variable. Due to caps on individual holdings, the weightings of Samsung Electronics and SK hynix may decrease, while the allocation to other semiconductor stocks could increase. Yoon explained, "Even if the same amount of capital flows in as before the regular rebalancing, a greater proportion will be allocated to stocks other than Samsung Electronics and SK hynix."

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