KODEX Leverage vs TQQQ — Which Should You Buy?

There is no single right answer. But depending on your tax structure and account type, there is clearly a more advantageous choice.

These two ETFs differ in underlying index, leverage multiple, and listing market. Before simply comparing which has higher returns, you should first check your account type and tax situation.

Comparing these two directly is like comparing apples and oranges. The real question is not about returns but “Are you betting on the Korean market or U.S. tech stocks?”

KOSPI 200 is centered on Korean large-caps like Samsung Electronics and SK hynix, while NASDAQ-100 is centered on U.S. tech giants like Apple, Microsoft, and NVIDIA. The two indices have low long-term correlation, meaning one can rise while the other moves sideways or falls.

Taxes are a variable as important as returns. Even with the same profit, the amount you actually take home differs significantly based on the tax structure.

Trading KODEX Leverage through a pension savings or IRP account lets you defer taxes on gains until withdrawal. Over long-term investment, the tax deferral effect alone can create meaningful return differences.

Beyond the stated expense ratio, leveraged ETFs incur additional borrowing costs (financing costs). The higher the leverage multiple, the larger the borrowed principal, causing these costs to increase sharply.

TQQQ's total cost is approximately 2.6x that of KODEX Leverage. These costs are deducted daily from NAV, making them invisible to investors, but they compound over long holding periods and significantly erode returns.

Investing in TQQQ also means investing in the U.S. dollar. KRW-denominated returns are directly affected by the USD/KRW exchange rate in addition to NASDAQ-100 performance.

For investors looking to increase USD asset allocation, FX exposure can be an advantage. On the other hand, if you only want KRW returns or want to avoid currency risk, KODEX Leverage is the simpler choice.

• If investing through a pension savings or IRP account → KODEX Leverage. TQQQ cannot be purchased in these accounts.
• If using an ISA account → KODEX Leverage. The KRW 2M tax-free benefit applies.
• If you want concentrated exposure to U.S. tech stocks → TQQQ (via a standard overseas stock account). But be prepared for 3x leverage and high total costs.
• If tax optimization is your top priority → KODEX Leverage (via ISA or pension accounts).
• If you seek aggressive returns → TQQQ. But remember that its costs are 2.6x those of KODEX.

Simulating the historical performance of both ETFs can show you which ETF was more advantageous in different market conditions. Always consider costs and taxes alongside returns.