Société Générale said that retail investors in South Korea are shifting from leveraged exchange-traded funds to structured products related to semiconductor stocks. This represents a shift in investment instrument preferences rather than a cooling in investment demand. Strategists, including Rajat Agarwal, wrote in the research report: “Despite the slowdown in single-stock leveraged ETF capital inflows over the past six weeks, ordinary stock purchases are still strong, and the scale of structured product issuance has increased, indicating only a change in investment tool preferences, not a weakening in retail demand.” The distribution scale of structured products linked to Samsung Electronics, SK Hynix, and the Korea Composite Stock Price 200 Index has nearly tripled since the May low, reaching 3.4 trillion won and 4.3 trillion won in July, respectively, and declined somewhat in August.

Société Générale said that retail investors in South Korea are shifting from leveraged exchange-traded funds to structured products related to semiconductor stocks. This represents a shift in investment instrument preferences rather than a cooling in investment demand. Strategists, including Rajat Agarwal, wrote in the research report: “Despite the slowdown in single-stock leveraged ETF capital inflows over the past six weeks, ordinary stock purchases are still strong, and the scale of structured product issuance has increased, indicating only a change in investment tool preferences, not a weakening in retail demand.” The distribution scale of structured products linked to Samsung Electronics, SK Hynix, and the Korea Composite Stock Price 200 Index has nearly tripled since the May low, reaching 3.4 trillion won and 4.3 trillion won in July, respectively, and declined somewhat in August.