▲ Single-stock leveraged ETFs based on Samsung Electronics and SK Hynix were listed on May 27. The photo shows the trading screen for a Samsung Electronics single-stock leveraged ETF on that day.
Foreign investors have been consistently net selling shares of Samsung Electronics and SK Hynix, while simultaneously alternating between net buying and net selling of single-stock leveraged exchange-traded funds (ETFs) based on those companies.
This strategy is interpreted as a move to maximize profits by actively trading single-stock leveraged products, while rebalancing portfolios by selling off shares of Samsung Electronics and SK Hynix that had seen sharp short-term gains.
According to the Korea Exchange on June 14, foreign investors net sold 124.6 billion won worth of seven SK Hynix single-stock leveraged products from May 27, the day they were first listed, through June 12.
On a daily basis, they recorded net selling on seven out of the 12 trading days and net buying on five.
They engaged in "ping-pong" trading, buying for a day or two after selling for two or three days.
A similar trading pattern was observed for the seven Samsung Electronics single-stock leveraged products.
During the same period, foreign investors net sold 175 billion won worth of these seven products.
As with SK Hynix, they recorded net selling on seven days and net buying on five out of the 12 trading days.
Notably, for Samsung Electronics single-stock leveraged ETFs, the cumulative foreign buying exceeded selling for six of the products, excluding TIGER.
In contrast, foreign investors continued a "selling streak" for the underlying stocks, offloading Samsung Electronics for 10 consecutive trading days from May 27 to June 10, and SK Hynix for 23 consecutive trading days from May 7 to June 10, only turning to net buying on June 11.
From May 27 to June 12, the cumulative net selling by foreign investors reached over 20 trillion won, combining Samsung Electronics (12.6098 trillion won) and SK Hynix (7.8761 trillion won).
Foreign ownership of Samsung Electronics and SK Hynix fell to their lowest levels of the year, at 47.58% on June 12 and 51.05% on June 11, respectively.
The securities industry believes that foreign investors have been taking profits to adjust their portfolio weightings, given the sharp rise in large-cap semiconductor stocks this year.
However, as the two stocks remain attractive due to the boom in the semiconductor industry, it is interpreted that investors have been working to enhance returns through single-stock leveraged products.
Lim Eun-hye, head of the ETP Strategy Team at Samsung Securities, analyzed, "Foreign investors account for 35% to 45% of the trading volume in single-stock leveraged products," adding, "They have been conducting high-frequency arbitrage trading involving spot stocks, futures, and ETFs."
She further explained, "Single-stock leveraged products offer advantages in terms of ease of trading, bid-ask spreads, and costs. Consequently, unlike their aggressive selling of spot stocks, foreign investors have shown a pattern of frequently alternating between long and short positions in single-stock leveraged products."
(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.