The domestic stock market experienced a significant drop earlier this month, and although it briefly rebounded, it has since fallen sharply again, hindering the recovery of major exchange-traded funds (ETFs). The KODEX 200, a leading ETF tracking the KOSPI 200 index, is currently trading at over 14% lower than its price on October 8.
According to the financial investment industry on October 30, Samsung Asset Management's KODEX 200 closed at 90,670 won, down 3,795 won (4.02%) from the previous trading day. This marks a decrease of 14.18%, or 14,980 won, compared to its closing price of 105,650 won on October 8.
The KODEX 200 fell from 105,650 won on October 8 to 87,025 won on October 15, a drop of 17.63%. Following this, buying interest emerged, and by October 28, it had rebounded to 95,650 won, reflecting a 9.91% increase from the October 15 closing price.
However, this upward trend was short-lived. After dropping to 94,465 won on October 29, it fell further to 90,670 won on October 30. Over the two days, it declined by 5.21%, giving back more than half of the previous gains. The increase from the October 15 low has also diminished to 4.19%. To recover its price from October 8, the KODEX 200 would need to rise by approximately 16.52%.
The decline in the KODEX 200 is attributed to the weak performance of large-cap semiconductor stocks. As of October 29, Samsung Electronics and SK Hynix accounted for 35.27% and 26.40% of the KODEX 200's composition, respectively, making up a total of 61.67%. On October 30, Samsung Electronics fell by 3.02%, and SK Hynix dropped by 7.08%, exerting downward pressure on the ETF.
On the same day, the KOSPI closed at 5,730.74, down 206.92 points (3.48%). Foreign investors sold a net 1.6173 trillion won in the stock market, with a significant amount of selling concentrated in large-cap semiconductor stocks. Concerns over profitability and investment burdens related to AI among major U.S. tech companies also impacted investor sentiment.
Despite the price decline, there has been continued inflow of funds. According to ETF data providers, the KODEX 200 saw a net inflow of approximately 1.8 trillion won over the past month, even as its return during the same period was -14.11%. This indicates that new funds have been entering the ETF despite the double-digit decline in returns.
A securities industry official stated, "The recent volatility in the stock market has led to repeated sharp fluctuations, preventing ETF prices from recovering to previous levels. It is essential to monitor the price movements of constituent stocks and changes in supply and demand rather than focusing solely on short-term rebounds."
* This article has been translated by AI.
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