Korean Retail Investors Buy $2.98B in U.S. Stocks in July, 77% Flows to Leveraged Semiconductor ETFs

According to the Korea Securities Depository, Korean retail investors made net purchases of $2.975 billion in U.S. stocks from July 1-22, marking the largest amount in five months. The buying surge was driven by weakness in the Korean won, which fell to 1,466.8 won per dollar as of July 23, compared to a 15-year high of 1,555.8 won on July 2, and increased volatility in the domestic KOSPI index.

The capital inflows heavily concentrated in high-risk leveraged products, particularly the SOXL 3x leveraged semiconductor ETF, which accounted for $2.288 billion or 77% of total net purchases. SK Hynix American Depositary Receipts, newly listed on Nasdaq, ranked second with $615.9 million in net inflows.