Retail traders sinking billions into US ETFs

Popular bet: Screens display the composite stock price index in a bank in Seoul. Investing in leveraged ETFs in the United States is seen as a way to climb the social ladder in South Korea where there is little class mobility. — AP

SEOUL: Leveraged exchange-traded funds (ETFs) are so popular among South Korean retail investors that they own more than 20% of some of the most high-profile ones listed in the United States.

Among their favourites, they hold no less than 35% of an ETF that offers a 1.5 times magnified bet on Elon Musk’s Tesla Inc, and 28% of another that provides a three-times wager on FAANG (Meta – formerly Facebook, Amazon, Apple, Netflix and Alphabet – formerly Google) and other tech shares, based on data compiled by Bloomberg.