Summary
- It reported that oil prices jumped on the blockade of the Strait of Hormuz, pushing crude oil ETF returns into the 20% range, led by KODEX WTI Crude Oil Futures and TIGER Crude Oil Futures Enhanced.
- It said nuclear power ETFs such as SOL Korea Nuclear SMR and TIGER Korea Nuclear Power ranked No. 3–5 in returns, supported by the passage of the Special Act on Investment in the United States and crude supply concerns.
- It reported that amid the government’s KOSDAQ market revitalization policy, retail funds moved into KOSDAQ active ETFs as well as defensive products such as covered call ETFs and Inverse 2X.
Forecast Trend Report by Period
Weekly ETF returns
KODEX WTI Crude Oil Futures
Up 20%, top performer
No. 3–5 are nuclear-related products
Big money piles into KOSDAQ active ETFs
As the Strait of Hormuz was effectively blockaded, sending oil prices surging to extreme highs, exchange-traded funds (ETFs) investing in crude oil futures and nuclear power took top spots on the performance table. Retail money also flowed heavily into newly listed KOSDAQ active ETFs last week.
According to ETF Check on the 15th, the best-performing ETF last week was “KODEX WTI Crude Oil Futures (H).” The product tracks an index based on West Texas Intermediate (WTI) futures prices and gained 20.29% over the period. “TIGER Crude Oil Futures Enhanced (H)” also rose 20.24% to rank second. As the Iran situation dragged on and international oil prices once again topped $100 a barrel, related ETFs posted sharp gains as well.
With concerns about crude supply mounting, nuclear power ETFs also strengthened. Expectations for Korea-U.S. nuclear cooperation also rose after the National Assembly passed the Special Act on Investment in the United States, adding support. “SOL Korea Nuclear SMR” (15.00%), “TIGER Korea Nuclear Power” (14.02%) and “KODEX Nuclear SMR” (10.26%) ranked No. 3 through No. 5, while “ACE Nuclear TOP10” (8.83%, No. 8) also made the leaderboard.
As investment funds have recently flocked to the KOSDAQ IPO market, “UNICORN Post-IPO Active” delivered a 9.76% return over the past week as well. It is an active ETF that focuses on newly listed companies that have cooled after post-IPO overheating and are poised to rise again.
Funds in the market were concentrated in the KOSDAQ market. Retail investors recorded net inflows of more than KRW 1 trillion into “KoAct KOSDAQ Active” (KRW 731.4 billion) and “TIME KOSDAQ Active” (KRW 368.9 billion), both launched on the 10th. They bet that the index would climb rapidly on the back of the government’s policy to revitalize the KOSDAQ market.
With stock-market volatility rising, many investors also shifted toward defensive ETFs. Retail investors net bought KRW 177.4 billion worth of “KODEX 200 Target Weekly Covered Call,” which broadly tracks part of the KOSPI 200’s upside while paying monthly distributions. “TIGER U.S. S&P 500” (KRW 109.5 billion) and “KODEX 200 Futures Inverse 2X” (KRW 72.1 billion) followed.
By Yang Ji-yoon, yang@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
