Retail Investors Flock to AI Semiconductor ETFs as Brokerage Firms Warn of Late-Day Volatility

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[Financial News] As retail money pours into AI Semiconductor ETFs and the KOSPI tops 8,000 for the first time on a closing basis, the market's semiconductor-heavy bias is becoming even stronger. Brokerage firms say supply-demand volatility could widen near the market close ahead of the launch of leveraged ETFs tied to Samsung Electronics and SK hynix single stocks.
According to Koscom Corporation's ETF Check on the 27th, the ETF with the largest net retail buying over the past month, from April 23 to May 22, was the SOL AI Semiconductor TOP2 Plus ETF, which drew in 984.3 billion won. Its return over the same period was 46.05%. The second-place fund was the KODEX AI Electric Power Core Facilities ETF, which attracted 934.5 billion won and posted a return of 37.82%. The Mirae Asset TIGER Fn Semiconductor TOP 10 ETF also saw 732.2 billion won in inflows, filling the top three spots in retail net buying with AI and semiconductor-related ETFs.
Large-cap semiconductor stocks continue to lead the domestic market. The previous day, the KOSPI closed at 8,047.51, up 2.55% from the previous session, surpassing 8,000 on a closing basis for the first time. SK hynix ended trading at 2,052,000 won, up 5.72%, and broke above the 2 million won mark in regular trading for the first time. Samsung Electronics also rose as high as 302,000 won intraday, briefly suggesting a recovery of the 300,000 won level.
Brokerage firms believe the semiconductor-led rally is likely to continue for now. With NVIDIA earnings marking the end of first-quarter results season for major U.S. Big Tech companies, analysts say the durability of the AI investment cycle has been reaffirmed. In the domestic market as well, Samsung Electronics and SK hynix have both continued to hit new highs, while rotation has begun to spread into previously overlooked sectors such as shipbuilding and Solar Power.
Sebin Kim, a researcher at Yuanta Securities Korea, said, "As the gains in large-cap semiconductor stocks continue, rotation is taking place across multiple areas, including AI infrastructure, industrials and financials," adding, "The war-related downside risk will ultimately be resolved and is only acting as a source of volatility in the broader trend, so expectations remain stronger."
Still, the stronger concentration in semiconductors means short-term supply-demand volatility remains a key variable. The launch of leveraged ETFs tied to Samsung Electronics and SK hynix single stocks is not expected to change the market's overall direction, but it could increase volatility in the closing auction period. That is because leveraged and inverse ETFs involve mechanical tracking trades and hedging activity to match their daily return multiples.
Ha Jae-seok, a researcher at NH Investment & Securities, said, "Given investors' strong interest, substantial fund inflows are expected at launch, but the impact of supply and demand on stock price direction is likely to be limited," adding, "In cases such as the NVIDIA and Tesla single-stock leveraged ETFs in the U.S., the relationship between leveraged ETF flows and stock price direction was weak."
koreanbae@fnnews.com Bae Han-geul Reporter