Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

I investigate special situations, pairs, and index rebalancing trades in Korea.

Korea / Special Sits, Pairs, Index Rebalancing

Backtesting Implications: Korea Sector ETFs Rebalancing on the 8th

Assessing the Korea NPS-Originated Flow Trends and Allocation Breakdown

A Sharp Likely Decline in Total Return (TR) ETFs in Korea Due to an Amendment in Regulations

KOSPI Size Index Migration: Official Results & Trading Approach Towards Implementation

Introducing KRX Sector Indices: SK Square & Iljin Hysolus Deserve Attention for Rebalancing

A Guide to Thematic Equity ETFs in Korea for Uncrowded Flow Trading Opportunities

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>There are 611 ETFs with a combined AUM of ₩76T. Korea is in the global top 7. ₩32T worth of ETFs belongs to local equity, half of which are index-trackers.</li>
<li>The market began to pay attention to the less crowded areas. The result is the rise of sector ETFs. Sector-type has also grown significantly, now with an AUM of ₩8.4T.</li>
<li>Lower predictability causes their rebalancings to be relatively less crowded. That is, the profit effect of acquiring prior information is much more dramatic on the day of rebalancing trading.</li>
</ul>


There are 611 ETFs with a combined AUM of ₩76T. Korea is in the global top 7. ₩32T worth of ETFs belongs to local equity, half of which are index-trackers.
The market began to pay attention to the less crowded areas. The result is the rise of sector ETFs. Sector-type has also grown significantly, now with an AUM of ₩8.4T.
Lower predictability causes their rebalancings to be relatively less crowded. That is, the profit effect of acquiring prior information is much more dramatic on the day of rebalancing trading.


Korea ETF Market Size Breakdown from a Flow Trading Perspective

Samsung KODEX Autos ETF

Korea ETF Market Size Breakdown from a Flow Trading Perspective