Domestic individual investors heavily bought exchange-traded funds (ETFs) tracking major U.S. stock indexes over the past week.
According to Koscom ETF Check on the 28th, the top two ETFs by net purchases from individual investors on the 22nd–26th were both products tracking the U.S. Standard & Poor's (S&P) 500 index.
Individuals were net buyers of the "TIGER U.S. S&P 500" ETF totaling 210.3 billion won during the period, making it the most purchased. They also net bought 103.2 billion won of the "KODEX U.S. S&P 500" ETF. Net purchases by individuals concentrated in the two products topped 310 billion won.
ETFs tracking the tech-heavy Nasdaq index also ranked near the top. The "KODEX U.S. Nasdaq 100" ETF (72 billion won) and the "TIGER U.S. Nasdaq 100" ETF (60.7 billion won) placed sixth and seventh, respectively. The "KODEX U.S. Dividend Covered Call Active" ETF (35 billion won) also made the top 10.
This appears to reflect spreading optimism about U.S. stocks as investment by global artificial intelligence (AI) big tech continues and expectations grow for a Federal Reserve interest rate cut. Expectations for a so-called "Santa rally" ahead of year-end and the new year are further boosting investor sentiment.
Meanwhile, some analysts say investors are buying strategically to gain exposure to overseas stocks while considering year-end tax benefits. Kim Dae-joon, an analyst at Korea Investment & Securities Co., said, "With year-end approaching, investors may have added U.S. index ETFs to reach the combined tax credit limit of 9 million won for personal pensions or individual retirement pensions (IRP)."