While the KOSPI index is rewriting an all-time high, individual investors are instead moving to "sell" domestic equity exchange-traded funds (ETFs). Many investors appear to judge that, with the stock index having risen steeply, the potential for further gains is limited.
According to FnGuide on the 16th, individuals made net sales totaling 551.5 billion won in 370 domestic equity exchange-traded funds from the start of this month through 11th. Net sales were largest in "KODEX Leverage," which tracks double the daily rise or fall of the KOSPI 200 index, at 267.4 billion won. That was followed by net sales of 213.7 billion won in "KODEX KOSDAQ150 Leverage," which follows double the daily rise or fall of the KOSDAQ 150 index.
KODEX 200 and TIGER 200, which directly track the KOSPI 200 index, also saw net sales this month of 94.5 billion won and 21.1 billion won, respectively. This means investors actively took profits, focusing on ETFs that had posted strong gains.
Instead, individuals additionally bought ETFs that could offer higher distributions, such as "Kodex 200 Target Weekly Covered Call," and shipbuilding-related ETFs that had recently slowed, such as "TIGER Shipbuilding TOP10" and "SOL Shipbuilding TOP3 Plus." Relatively underperforming secondary battery–related ETFs, including "KODEX Secondary Battery Industry Leverage" and "KODEX Secondary Battery Industry," ranked near the top in net purchases.
Individuals have aggressively invested in domestic equity ETFs since June. Net purchases reached 893.1 billion won in June and 1.1679 trillion won in July. But after the Lee Jae-myung administration's first tax reform plan was announced and the stock market turned sluggish, net purchases shrank to 43.5 billion won in August, and this month individuals shifted to net selling.
During the same period, "money moves" to overseas stocks also continued. Individuals recorded net sales of 231.3 billion won in overseas equity ETFs in June, but shifted to net purchases of 237 billion won in July, followed by 358.3 billion won in August and 389.7 billion won in September, with the net purchase amount gradually increasing.
Based on individual investor flows, some skepticism remains about the overall bull market, analysts say. As of 11th, investor deposits—idle funds on the sidelines—exceeded 71 trillion won.
A securities firm official said, "In the case of the KOSPI index, the year-to-date gain has exceeded 40 percent, which is the third highest since the 2000s," adding, "For individuals who have long suffered from the 'boxpi,' it is only natural to question whether there is room for further gains."
In the securities industry, the view is that for individuals to return to investing in domestic equity ETFs, corporations' revenue, beyond policy effects, needs to back it up.
Park Seung-jin of Hana Securities said, "Since June, the domestic stock market has been driven more by valuation re-rating due to policy effects than by earnings improvement," adding, "For the domestic market's uptrend to hold and individual buying to emerge, we need to see moves supported by earnings."