KOSDAQ ETFs recorded double-digit losses on July 9 as the index failed to recover the 800 level. Major KOSDAQ 150 ETFs posted 17-18% losses over the one-month period ending July 9, while active KOSDAQ ETFs declined up to 22.96%. The underperformance stemmed from weakened investor sentiment toward growth stocks in biotech, secondary batteries, and semiconductor materials sectors, combined with intensified capital concentration in KOSPI large-cap stocks. According to data from KOSCOM ETF Check, the KOSDAQ index closed at 794.00 on July 9, marking the first close below 800 since September of the previous year.
KOSDAQ 150 ETFs Record 17-18% Monthly Losses
According to KOSCOM ETF Check data as of July 9 closing prices, major KOSDAQ 150 ETFs recorded one-month losses in the 17-18% range. KODEX KOSDAQ 150 fell 17.84%, SOL KOSDAQ 150 declined 18.08%, ACE KOSDAQ 150 dropped 17.53%, TIGER KOSDAQ 150 fell 17.61%, KIWOOM KOSDAQ 150 declined 17.71%, and RISE KOSDAQ 150 dropped 17.75%. Returns are calculated on a total return basis assuming dividend reinvestment.
Short-term and medium-term performance also showed weakness. One-week losses for major KOSDAQ 150 ETFs reached 10-11% levels. KODEX KOSDAQ 150 fell 11.05%, SOL KOSDAQ 150 declined 10.93%, and TIGER KOSDAQ 150 dropped 10.82%, all recording double-digit losses. On a three-month basis, losses expanded to around 25%, with KODEX KOSDAQ 150 down 25.13%, SOL KOSDAQ 150 down 25.31%, and TIGER KOSDAQ 150 down 25.15%.
Active KOSDAQ ETFs Decline Up to 22.96%
Active KOSDAQ ETFs experienced larger declines than index-tracking ETFs. KoAct KOSDAQ Active recorded a one-month loss of 22.96%, TIGER KOSDAQ Active fell 22.82%, and TIME KOSDAQ Active declined 22.77%. PLUS KOSDAQ 150 Active dropped 19.47%, while MIDAS KOSDAQ Active fell 18.16%. The larger losses in some active ETFs compared to index ETFs reflected differences in constituent holdings and sector weightings during the KOSDAQ correction phase.
KOSDAQ Index Fails to Recover 800 Level
The ETF underperformance coincided with broad weakness in the KOSDAQ market. On July 9, the KOSDAQ index closed at 794.00, up 9.00 points (1.15%) from the previous trading day, but failed to recover the 800 level. This marked the first close below 800 on a closing basis since September of the previous year. KOSDAQ fell below the 1,000 level last month, then dropped below 900, and has declined more than 13% in July.
Analysts attributed the KOSDAQ weakness to capital concentration in KOSPI large-cap stocks rather than deterioration in individual company fundamentals. Lingering doubts about earnings visibility in some growth sectors such as biotech and secondary batteries, combined with capital flows into semiconductor large-caps and undervalued stocks in KOSPI, weakened the buying base across KOSDAQ. The widening gap between KOSPI and KOSDAQ illustrated this trend. The market capitalization difference between the two markets, which had narrowed in 2023, expanded again as the KOSPI-centered market strengthened.
Analyst Cites Selective Recovery Potential Based on Fundamentals
Lee Young-won, researcher at Heungkuk Securities, stated that the KOSDAQ market has undergone a larger correction compared to the KOSPI market, with the market capitalization ratio expanding to 14.2 times at the end of June and currently standing at around 13.3 times. He noted that from a situation where the gap had narrowed to around 4.4 times in 2023, acceleration of concentration toward the KOSPI market has led to record differentiation.
Lee added that while the market trend will not change easily, a selective normalization process based on fundamentals is expected to proceed. ETF return recovery will depend on earnings visibility and capital flow recovery in major constituent sectors rather than simple index rebounds.
FAQ
What losses did KOSDAQ 150 ETFs record over one month ending July 9?
Major KOSDAQ 150 ETFs recorded losses in the 17-18% range over the one-month period ending July 9. KODEX KOSDAQ 150 fell 17.84%, SOL KOSDAQ 150 declined 18.08%, ACE KOSDAQ 150 dropped 17.53%, TIGER KOSDAQ 150 fell 17.61%, KIWOOM KOSDAQ 150 declined 17.71%, and RISE KOSDAQ 150 dropped 17.75%.
Why did KOSDAQ ETFs underperform in July?
The underperformance stemmed from weakened investor sentiment toward growth stocks in biotech, secondary batteries, and semiconductor materials sectors, combined with intensified capital concentration in KOSPI large-cap stocks. The KOSDAQ index failed to recover the 800 level on July 9, closing at 794.00.
How did active KOSDAQ ETFs perform compared to index-tracking ETFs?
Active KOSDAQ ETFs experienced larger declines than index-tracking ETFs. KoAct KOSDAQ Active recorded a one-month loss of 22.96%, TIGER KOSDAQ Active fell 22.82%, and TIME KOSDAQ Active declined 22.77%, reflecting differences in constituent holdings and sector weightings during the correction phase.
