Kospi 8000 Celebration Followed by Drop: Three ETF Responses to Watch

After the Kospi 8000 celebration was followed by a sharp decline in the local market, attention turned to how ETF investors should respond. The key words presented in the report were phased buying, equal weighting, and global diversification. The backdrop is optimism around the semiconductor cycle. The report also noted that in 2017 there was a so-called semiconductor super cycle, but the market still fell for more than two years afterward. While expressions such as semiconductor ultra cycle and a market that keeps rising without a cycle are now being used, the ETF response highlighted was to avoid concentration, split purchase timing, and manage volatility through equal weighting and global diversification. Source: mk.co.kr.