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Photo courtesy of Yonhap News |
[Alpha Biz= Ellie Kim] Foreign investors are channeling significant capital into ETFs tracking the MSCI Korea Index, following record-breaking first-quarter earnings by Samsung Electronics and SK Hynix.
According to ETF analytics platform ETF CHECK on April 26, foreign investors net bought 433.7 billion won worth of Mirae Asset’s “TIGER MSCI Korea TR ETF” on April 22, after purchasing 76.4 billion won the previous day. The two-day inflow of over 510 billion won marks an unusually large surge compared to typical daily trading volumes.
The ETF allocates more than 60% of its holdings to Samsung Electronics and SK Hynix, making it a key beneficiary of the semiconductor rally. It has become the most heavily bought ETF by foreign investors both this month and year-to-date.
A similar product, Samsung Asset Management’s “KODEX MSCI Korea TR ETF,” also attracted strong foreign inflows, reflecting growing demand for diversified exposure to Korea’s top companies while maintaining a heavy weighting in the semiconductor sector.
The MSCI index, widely used by global institutional investors as a benchmark, combined with the total return (TR) structure that automatically reinvests dividends, has further boosted its appeal for long-term investors.
Meanwhile, overseas demand is also rising. The “Roundhill Memory ETF,” launched in the U.S. earlier this month, has attracted approximately $1.3 billion in inflows within just three weeks.
In contrast, retail investors in Korea have taken the opposite approach. Individual investors have net sold a record 14.7 trillion won in the stock market this month, locking in profits from semiconductor stocks. Many have also increased positions in inverse ETFs, effectively betting on a market downturn.
However, analysts warn that continued earnings strength from Samsung Electronics and SK Hynix could drive further stock gains, posing risks to those betting against the market.
알파경제 Ellie Kim 인턴기자(press@alphabiz.co.kr)
