Korean investors moved 723.9 billion won into parking-type and dividend-type exchange-traded funds during a week of heightened stock market volatility, according to data from KOSCOM ETF CHECK reported July 26. The fund inflows occurred as the KOSPI index fell 21.07% from 8476.48 at end-June to 6690.62 on July 24, while the KOSDAQ index dropped 5.32% to 748.22 on the same day. Investors sought products offering volatility protection and interest earnings, with 422.9 billion won flowing into seven parking-type products tracking short-term rates and 301 billion won entering four dividend-type ETFs during the five-day period.
Parking-Type ETFs Receive 422.9 Billion Won in One Week
Seven parking-type ETF products tracking ultra-short-term interest rates, money markets, and certificate of deposit rates received total inflows of 422.9 billion won during the five-day period, according to KOSCOM ETF CHECK data. TIGER KOFR Rate Active (Synthetic) attracted 108 billion won, while TIGER Money Market Active received 104.4 billion won. These cash-equivalent and short-term bond products are classified as parking-type instruments because they offer higher returns than deposits while maintaining low investment risk grades. The products track KOFR, CD rates, and financial bond benchmarks.
Dividend ETFs Attract 301 Billion Won Amid Market Decline
Four dividend-type ETF products received combined inflows of 301 billion won during the same week. TIGER Dividend Covered Call Active attracted 105.2 billion won, while KODEX 200 Covered Call Active received 95 billion won. These products invest in dividend-paying stocks while selling call options to secure premiums. Investors sought to combine the stability of parking-type products with the cash flow generation of dividend strategies. TIGER KOFR Rate Active (Synthetic) gained 0.04% while TIGER Dividend Covered Call Active rose 4.73% during the period when KOSPI declined.
KOSPI Falls 21.07% from End-June to July 24
The KOSPI index declined from 8476.48 at end-June to 6690.62 on July 24, representing a 21.07% drop. On July 24, KOSPI fell 406.27 points (5.72%) in a single session. The KOSDAQ index closed at 748.22 on July 24, down 42.06 points (5.32%) from the previous session. The sharp declines drove investors to redirect short-term standby funds into parking-type and dividend-type products as temporary safe havens amid stock market uncertainty.
Analyst Forecasts Continued Flows Until Big Tech Earnings Clarity
Roh Dong-gil, a researcher at Shinhan Investment & Securities, stated that fund movements into parking-type and dividend-type ETFs will likely continue as volatility persists. He noted that risk-asset avoidance flows could ease if U.S. Big Tech companies' second-quarter earnings at end-July confirm artificial intelligence infrastructure investment and financing capacity. Roh stated, "If Big Tech's second-quarter results meet or exceed expectations, it would be worth approaching leading stocks with split purchases after the correction period."
FAQ
What amount flowed into Korean parking and dividend ETFs during the week reported July 26?
A total of 723.9 billion won moved into 11 parking-type and dividend-type ETF products during the five-day period, with 422.9 billion won entering seven parking-type products and 301 billion won flowing into four dividend-type ETFs, according to KOSCOM ETF CHECK data.
How much did the KOSPI index fall from end-June to July 24?
The KOSPI index declined 21.07%, falling from 8476.48 at end-June to 6690.62 on July 24. On July 24 alone, KOSPI dropped 406.27 points, representing a 5.72% single-session decline.
Which ETF products received the largest inflows during the period?
TIGER KOFR Rate Active (Synthetic) received 108 billion won, TIGER Dividend Covered Call Active attracted 105.2 billion won, TIGER Money Market Active received 104.4 billion won, and KODEX 200 Covered Call Active received 95 billion won during the week.
