Rotation From Leveraged ETFs Fuel 30% Jump in Korea Small Caps

South Korea's small-cap stocks traded on the Kosdaq rose 30 percent after new restrictions on leveraged exchange-traded funds redirected investor capital away from large-cap chipmaker stocks. The restrictions on leveraged ETFs tracking heavyweight semiconductor companies prompted portfolio rebalancing toward smaller-capitalization names. The shift follows a period in which small-cap stocks underperformed larger peers.

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