South Korean retail investors' net exchange-traded fund (ETF) purchases fell 73% in August to 2.3756 trillion won, the lowest monthly level this year, extending a two-month decline as the KOSPI's advance weakened. After regulators tightened trading rules for domestic single-stock leveraged ETFs, retail demand for leveraged exposure appears to have shifted toward US-listed products, alongside increased buying of overseas index funds such as TIGER US S&P500, KODEX US Nasdaq 100 and KODEX US S&P500. Korean investors now hold unusually large portions of several US-listed leveraged ETFs, and their activity may have contributed to trading volumes that recently disrupted daytime access to popular products. Foreign investors showed a different pattern during Aug. 26-Sept. 1, buying leveraged ETFs tied to SK Hynix, Samsung Electronics, the KOSPI and semiconductors while net selling 1.9507 trillion won in KOSPI shares. Analysts linked the divergent flows to market volatility, portfolio rebalancing, weaker risk appetite and increased short-term trading.