Inverse ETFs Power Korean Gains as Dollar Falls

Korean exchange-traded funds (ETFs) saw significant gains in the third quarter of this year, led by products that bet on a decline in the value of the U.S. dollar.

The top three performers among ETFs listed in Korea were 'KODEX U.S. Dollar Futures Inverse 2X', 'TIGER U.S. Dollar Futures Inverse 2X', and 'KIWOOM U.S. Dollar Futures Inverse 2X', which all tracked the U.S. Dollar Futures Index at '-2 times'.

These inverse ETFs bet twofold on a decline in the dollar's value, and their performance was fueled by the 9.91% fall of the U.S. Dollar Futures Index from June 1 to September 30.

The won-dollar exchange rate also fell over this period, dropping from 1,503.2 won to 1,358.4 won.