r/letfs
Anyone bullish on Korea still? Looking for leveraged ETF exposure
Author is bullish on South Korea's memory chip sector and seeks advice on leveraged ETFs like KORU for exposure.
- South Korea's memory chip sector is well-positioned for exploding HBM demand.
- SK Hynix and Samsung are in a great position to benefit from the AI memory story.
I've become increasingly bullish on South Korea over the next few years, particularly because of the memory story. Sk hynix and samsung seem like they're in a great position if HBM demand continues to explode.
Already have a decent position in EWY, but considering adding some leverage. Has anyone invested in KORU or KRWX? How have they performed compared to expectations, any downsides beyond daily reset/volatility drag? Are there any other leveraged products people like for Korea exposure?
Should go back up to ATH once we clear up the Iran war. Good time to buy was in the $600s but next best is now. Expect to easily go back above $1200 soon.
KORU has had a nice run so far but I'm not sure how much longer it will go. Still holding some but taking it day to day. For some reason I feel less confident buying the red day sales than I did a few weeks ago.
My moment stratagy currently picks it based on 3, 6, and 12 month absolute and relative momentum. It picks about 10 things a month and then I buy leverage ETFs of a few to get to a volatility target of 2-3x overall for the strategy.
I
was expecting it to maybe not be chosen because I put a minimum risk adjusted return requirement in but it's risk adjusted return is actually very good, just because it's returns are a bit crazy so even though +/15% in a day is normal it's pretty small compared to the return over the last however many months you're looking.
I am pretty bullish on Korea until the memory chip storage issues are resolved.
You can also see that Korean liquidity is flowing into the market because BTC is unable to break out of the 65k range. I bring up BTC because Koreans are some of the biggest investors in crypto, so when there is no liquidity going into crypto, it means liquidity is going into their stock market.
I've been selling cash secured puts on koru. Could have made more buying it outright, but even selling far out of the money puts gives a lot of premium, so I can't complain.
Tbh, South Korea looks too volatile to have a leveraged position in. I'd rather take a US sector bet.
Koru is bae