South Korean sector rotation accelerated in early August as KOSDAQ leveraged ETFs (funds designed to deliver twice the daily move of an index) dominated domestic returns, with five products tied to the KOSDAQ 150 Index gaining 45.83% to 51.35% from August 3 to 13 after the benchmark rose 22.85%. Defense and aerospace ETFs also advanced sharply, led by KODEX Defense Top 10 Leverage at 42.55% and SOL Aerospace Value Chain at 38.52%, as renewed Middle East tensions, Hanwha Aerospace's eight-session rally and a rebound in SpaceX shares improved sentiment. Analysts said the broadening beyond semiconductors supports the view that sector rotation is under way, although chip-focused funds continued to attract fresh money, with TIGER Semiconductor Top 10 drawing 117.5 billion won and TIGER Semiconductor Top 10 Covered Call Active taking in 91.3 billion won over August 7 to 12.