Seoul: Average daily transactions of South Korea's exchange traded funds (ETFs) have plunged this month, after authorities restricted investment on single-stock leveraged ETFs, according to data Thursday. The daily turnover of ETFs stood at 17.4 trillion won (US$12.5 billion) so far this month, down 47.6 percent from last month, the data from the Korea Exchange showed.

According to Yonhap News Agency, an ETF invests in a basket of stocks that reflects an index, or commodities and bonds, providing retail investors and institutions with a more liquid and risk-hedging tool. Since late last month, financial authorities have raised the minimum cash deposit for single-stock leveraged ETF investments that have been blamed for the market volatility.

The daily turnover of ETFs jumped to a record level of 33.2 trillion won in June, according to the latest findings.