Inverse ETFs Ride US Dollar Decline to Q3 Success

The top three exchange-traded funds (ETFs) in Korea during Q3 were all inverse leveraged products that bet on the decline of the US dollar.

According to the Korea Exchange, these ETFs were KODEX US Dollar Futures Inverse 2X at 22.76%, TIGER US Dollar Futures Inverse 2X at 22.49%, and KIWOOM US Dollar Futures Inverse 2X at 22.39%.

These products track -2 times the daily fluctuation rate of the US dollar futures index traded on the Korea Exchange, effectively betting double on the decline of the dollar.

The US dollar futures index fell by 9.91% from June 1 to September 30, while the won-dollar exchange rate dropped from 1,350.3 won to 1,352.8 won during the same period.