South Korean Investors Sold $664M Semiconductor 3x ETF, Bought Micron and SK Hynix Stocks

South Korean retail investors sold $664.39 million of a US semiconductor 3x leveraged ETF on August 3, according to Korea Securities Depository data released August 5. The selling of the Direxion Daily Semiconductors Bull 3X Shares ETF (SOXL) came after investors purchased $3.786 billion of the same fund in July. The profit-taking followed SOXL's rebound after the price dropped from over $200 in early July to below $100, with investors redirecting capital into individual semiconductor stocks including Micron, SanDisk, and SK Hynix American Depositary Receipts during the same period.

South Korean Investors Sold $607.35M SOXL Over Two Days

The $664.39 million net selling on August 3 represented 17.5% of the $3.786 billion investors bought in July. On August 4, investors reversed course with $57.04 million in net buying, but the two-day period from August 3-4 still recorded $607.35 million in net selling. The Korea 3x leveraged ETF tracking the Korean stock market (Direxion Daily MSCI South Korea Bull 3X Shares) also saw $45.63 million in net selling during the same period.

Micron and SK Hynix ADR Attracted $140.83M and $93.23M Respectively

During August 3-4, Micron received the highest net buying at $140.83 million, followed by SanDisk at $145.47 million. SK Hynix ADR ranked third with $93.23 million in net inflows. Market observers attributed the shift to investors taking profits from short-term leveraged ETF positions while moving capital into semiconductor companies with strong earnings improvement expectations.

US Stocks Net Buying Continued for Third Consecutive Month

South Korean investors maintained net buying of US stocks in August with $278.31 million in purchases, extending a three-month streak. In June, investors bought $632.96 million in US stocks, followed by $4.669 billion in July.

FAQ

What did South Korean investors do with their semiconductor ETF holdings on August 3? South Korean retail investors sold $664.39 million of the Direxion Daily Semiconductors Bull 3X Shares ETF (SOXL) on August 3, according to Korea Securities Depository data released August 5.

Which individual semiconductor stocks did South Korean investors buy during August 3-4? Micron received $140.83 million in net buying, SanDisk received $145.47 million, and SK Hynix ADR received $93.23 million during August 3-4.