Core Insights - Korean retail investors, known for their aggressive trading, are increasingly turning to complex leveraged VIX products amid growing concerns over a valuation bubble in the U.S. stock market [1] - The 2x long VIX futures ETF has attracted approximately $130 million in inflows from Korean investors this year, accounting for about 20% of the global inflows into this ETF [1] - The trend is driven by dual motivations: some investors are hedging their substantial long positions in U.S. stocks, while others are speculating on a market correction [1] Group 1: Investment Trends - The 2x long VIX futures ETF has become one of the most favored U.S.-listed ETFs among Korean investors, ranking seventh in purchase volume in July [1] - Analysts warn that these leveraged volatility products are designed for short-term trading and can lead to significant losses if held long-term [1][2] Group 2: Risks and Misunderstandings - The risks associated with leveraged VIX products are significantly higher than those of ordinary leveraged securities, and many Korean retail investors may not fully understand these risks [2] - These products require continuous rebalancing through futures positions, which can lead to losses even during short-term price increases [2] Group 3: Retail Investor Behavior - Korean retail investors, referred to as "ants," are drawn to overseas leveraged or inverse securities due to the lack of trading restrictions compared to local derivatives [3] - Popular chat groups on Kakao Talk discuss VIX and leveraged products, indicating a community-driven approach to trading [3] - Some retail investors remain committed to their positions despite losses, reflecting a strong belief in potential market recovery [3]