Data released by the Korean exchange on Thursday indicates that the daily average trading value of exchange-traded funds (ETFs) in the country has fallen significantly this month, following regulatory restrictions on investments in leveraged ETFs tracking single stocks.
The daily average trading volume of ETFs this month stood at 17.4 trillion Korean won (approximately $12.5 billion), marking a 47.6% decrease compared to the previous month. Since late last month, South Korea's financial regulators have raised the minimum margin requirement for leveraged ETFs on individual stocks, a product type that has been cited as a contributing factor to market volatility.
According to the latest figures, the daily average trading value of South Korean ETFs had surged to a record high of 33.2 trillion Korean won in June.