After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
South Korean retail investors are increasingly shifting capital into high-risk, triple-leveraged U.S. ETFs following government restrictions on domestic single-stock leverage products. This trend has led to significant capital outflows as investors seek higher returns abroad.
After the government raised the investment barrier for domestic single-stock leverage products, a surge of funds has flowed into overseas leveraged Exchange Traded Funds (ETFs). Critics point out that leverage regulations are pushing demand for high-risk, high-return investments abroad, resulting in unintended capital outflows from Korea.
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