South Korea money-market ETFs draw ₩1.6 trillion as investors seek cash-flow protection

  • South Korean investors directed funds into money-market and covered-call ETFs during a stock-market correction.
  • Money-market ETFs attracted ₩1.6 trillion, led by ₩531.9 billion for KODEX Money Market Active.
  • Retail investors net bought ₩499.8 billion of KOSPI-listed ETFs from the 24th through the 28th.

South Korean investors are shifting money away from domestic equities into money-market and covered-call ETFs as the stock market enters a correction phase. ETF Check data compiled on the 29th showed weekly inflows of ₩1.6 trillion ($1.16 billion) into domestically listed money-market ETFs, led by ₩531.9 billion into KODEX Money Market Active and ₩303.6 billion into TIGER Money Market Active. RISE Money Market Active added ₩121.9 billion. These products invest idle brokerage cash in ultra-short-term bonds and commercial paper, offering annual yields below 3%, real-time trading and limited price volatility. Covered-call ETFs, which generate option-premium income by selling call options against stock holdings, attracted about ₩1 trillion during the week. TIGER Dividend Covered Call Active led with ₩341.3 billion, followed by KODEX 200 Covered Call Active with ₩251.4 billion. U.S. equity ETFs also continued to attract capital, with four leading products receiving more than ₩800 billion combined. Retail investors net purchased ₩499.8 billion of KOSPI-listed ETFs from the 24th through the 28th, while foreign investors bought ₩269.7 billion. Earlier ETF Check data had also shown strong demand for money-market products as investors waited for clearer direction amid elevated long-term U.S. Treasury yields and interest in dollar-based assets.

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