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Trading volume in single-stock leveraged exchange-traded funds has dropped sharply since regulators raised the minimum deposit requirement for such products, while turnover in index-type leveraged ETFs has risen — a shift that points to retail investors moving their money into index-based products as the investment bar for single-stock instruments rose.

According to ETF CHECK, KODEX 200 ranked first in ETF trading volume from July 31 through Thursday, accumulating 11.55 trillion won ($8.1 billion) over the period.

It was followed by KODEX Leverage (10.98 trillion won), KODEX Inverse (6.92 trillion won), KODEX 200 Futures Inverse 2X (5.12 trillion won) and KODEX Kosdaq150 Leverage (3.79 trillion won).

Three of the five most-traded ETFs by volume were leveraged or inverse products.

Among single-stock leveraged ETFs, KODEX SK Hynix Single-Stock Leverage posted the highest trading volume at 2.96 trillion won — but ranked only seventh overall.

The contrast with the period before the rule change is stark. From May 27, when single-stock leveraged ETFs were first launched, through July 30, single-stock leveraged products had occupied first place and fourth through sixth place in the daily trading volume rankings.

Financial regulators raised the minimum deposit requirement for single-stock leveraged ETFs from 10 million won to 30 million won starting July 31. The tighter rules apply to single-stock leveraged ETFs listed both domestically and overseas.

Since the regulation took effect, daily average trading volume in single-stock leveraged ETFs — which had previously exceeded 10 trillion won — fell below 1 trillion won. On Thursday, combined trading volume across 16 single-stock leveraged ETF products, including two inverse types, came to 907.6 billion won.

The higher entry barrier for single-stock leveraged ETFs appears to have pushed retail investors toward index-type leveraged and inverse products. Index-type leveraged ETFs still require only the existing minimum deposit of 10 million won.

KODEX 200 recorded the largest net inflow among all ETFs over the most recent week (July 30 through Aug. 5), drawing in 654.2 billion won. KODEX Leverage (573.9 billion won) and KODEX Kosdaq150 Leverage (390.1 billion won) followed.

Among the top 20 ETFs by net inflow, the only single-stock leveraged product to make the list was KODEX SK Hynix Single-Stock Leverage, which ranked sixth with inflows of 181.7 billion won.


moon@heraldcorp.com