South Korean retail investors, often dubbed "Seohak Ants," have dramatically shifted their approach to U.S. stock markets in the wake of the Middle East conflict that erupted in March 2026. Once known for piling into individual tech giants like Alphabet, Tesla, and Microsoft, these investors are now betting big on high-risk leveraged exchange-traded funds (ETFs) and exchange-traded notes (ETNs), signaling a profound change in their risk appetite and investment strategies.
According to data from the Korea Securities Depository cited by Yonhap Infomax, this pivot was stark. Up until February 2026, the top 10 U.S. stocks favored by South Korean investors were dominated by seven individual names—Alphabet, Microsoft, Tesla, and others from the so-called "Magnificent 7" (M7) tech stocks. Alphabet alone attracted $1.12752 billion in net purchase settlement funds, a staggering sum that underscored the group’s faith in Silicon Valley’s biggest brands.
But the outbreak of war in the Middle East in early March changed everything. Suddenly, the list of top net purchases was filled with seven ETFs and a single ETN, leaving only two individual stocks—Applied Optoelectronics and Tesla—among the top 10. The leveraged semiconductor ETF SOXL became the new favorite, pulling in $1.2542 billion in net purchases and claiming the top spot for March. Other leveraged products, such as the triple-leveraged Nasdaq ETF (TQQQ) and the Korean stock triple-leverage ETF (KORU), also surged in popularity. In fact, six out of the top 10 net purchased products were leveraged ETFs or ETNs tracking underlying indices with two to three times leverage.
This shift marks a clear move away from stock picking and toward betting on broader market direction—often with amplified risk. As the International Finance Center observed in a report released April 1, the share of M7 stocks among the top 50 net purchases plummeted from 23% in February to just 3% in March, the lowest since July 2025. The report’s analyst, Shin Sul-wee, noted, "Aggressive investment tendencies focusing on high-risk assets like leveraged ETFs have intensified, while the preference for big tech has significantly decreased." At the same time, investors have increased their holdings in fixed-income assets as a buffer against risk.
What’s driving this change? The answer, it seems, is volatility—and the opportunity it provides. Between March 26 and March 30, as the S&P 500 and Nasdaq indices dropped 3.8% and 5.2% respectively, South Korean investors snapped up $1.38962 billion in U.S. stocks, according to the Korea Securities Depository’s Savebro portal. But as the markets rebounded just days later, with the S&P 500 and Nasdaq climbing 3.6% and 5.0% from March 31 to April 1, these same investors sold off $703 million, locking in profits. Over the week, they maintained a net purchase advantage of $686.65 million.
The leveraged SOXL ETF led the charge, as its price plummeted 28.8% in late March, prompting $1.16323 billion in net purchases. When SOXL rebounded 28.7% at the end of the month, investors responded with $930.8 million in net sales. For the week, SOXL topped the net purchase rankings with a $260.16 million advantage. TQQQ, the triple-leveraged Nasdaq 100 ETF, followed with $178.11 million in net purchases and continued to attract buyers even as the market rebounded. Other Nasdaq 100 ETFs—including QLD (double leverage), QQQM, and QQQ—also saw significant inflows, ranging from $48.42 million to $55.88 million in net purchases.
Individual stock action was more subdued but still notable. Quantum computing firm IonQ drew $53.62 million in net purchases after its share price fell below $30. AI data center operator Nebius Group saw $49.29 million in net buying as its stock dipped below $100. Bitcoin miner iREN attracted $42.96 million in net purchases after a 9.6% drop pushed its shares below $40. Marvell Technology, specializing in custom AI chips and optical communication components, experienced a wild ride—dropping 10.8% in late March before surging 21.5% in early April, with $36.97 million in net purchases along the way. Despite the turbulence of the Middle East conflict, Marvell’s stock continued to hit new highs.
Some big names from the tech world—Microsoft, Meta Platforms, and Tesla—remained in favor, with net purchases of $31.11 million, $29.23 million, and $25.63 million respectively during the last week of March. However, this was a far cry from the billions poured into Alphabet and Tesla just a month prior. In fact, Alphabet shifted from a net purchase of $230 million in February to a net sale of $230 million in March, as its share price tumbled from $315 at the start of the year to $273 by the end of March—a drop of over 13%. Tesla’s stock fared even worse, falling 15% from $438 to $371 over the same period. Palantir was the biggest net sold individual stock in March, with $360 million in net sales.
On the sell side, Oracle stood out with $87.6 million in net sales between March 26 and April 2, as its shares continued to languish. Other notable net sales included the SPDR short-term corporate bond ETF SPSB ($53.96 million), SanDisk ($46.31 million), Western Digital ($25.76 million), Circle Internet Group ($36.34 million), Bloom Energy ($35.29 million), and the Direxion Daily Semiconductor Bear 3X ETF (SOXS) with $27.63 million. Palantir Technologies, Coherent, and Micron Technology also saw substantial net selling as their share prices swooned before attempting rebounds.
Overall, the total net purchases by South Korean investors in overseas stocks in March 2026 dropped sharply to $1.51 billion—less than half of February’s $3.85 billion and the lowest monthly figure since August 2025. With buying activity shrinking, the capital that remained was increasingly concentrated in leveraged and high-risk products. As Yonhap Infomax reported, "The remaining funds are being funneled into high-multiplier products, even as the overall buying trend shrinks."
In summary, the turbulence sparked by the Middle East conflict has upended long-standing habits among South Korean retail investors. The days of relentless big tech buying appear to be on hold, replaced by a willingness to chase risk and volatility—sometimes with eye-popping leverage. It’s a bold new chapter for the "Seohak Ants," but one that brings both opportunity and peril in equal measure.