Individual investors bought more than 6 trillion won in the top 10 exchange-traded funds (ETFs) listed on the domestic stock market last year. Considering that the total amount that individuals bought in the domestic ETF market last year was about 9 trillion won, more than half of the amount was focused on the top 10 stocks. They invested heavily in ETFs that track US indexes and themed ETFs such as electric vehicles, rechargeable batteries, and metaverses.
According to the Korea Exchange on the 31st, individual investors from January 4 to December 30, 2021, net bought the top 10 ETFs by 6.77 trillion won. ETFs incorporating US stocks accounted for the most with 4, followed by ETFs related to Korea (3) and China (2). It also drew attention that four of the top 10 stocks by individual investors’ net purchases were new ETFs listed last year.
Last year, individual investors’ ETF purchases increased markedly. The total net purchase amount of ETFs by individuals in 2020 was about 5.531.7 trillion won. As this amount jumped by more than 4 trillion won in 2021, the total net purchases of ETFs by individual investors totaled 9.7347 trillion won. As of the 30th, a total of 533 ETFs were listed in Korea. The fact that 70% of individual net purchases were concentrated in the top 10 ETFs indicates a clear trend.
The reason why individual investors concentrated their money was because the growth rate supported it. Last year, the KOSPI rose only 1.1%. The average increase of the top 10 ETFs by individual investors is 21.2%. The TIGER US Nasdaq 100 ETF, which tracks the US Nasdaq 100, rose 40.4%.
Seven theme-type ETFs were included in the top ETFs by individual investors last year. In particular, it invested the most money by purchasing the TIGER China Electric Vehicle Positive ETF, which invests in China’s electric vehicle and secondary battery industries, worth 2.4 trillion won (US$2.35 billion) in one year. The ETF has risen more than 36% last year.
Among domestic stock-type ETFs, they preferred themed products such as rechargeable batteries and metaverse. For example, in the KODEX rechargeable battery industry ETF, individuals net bought about 305.7 billion won last year. Considering that the Metaverse ETF was listed on October 13, last year, in less than three months, more than 300 billion won of personal funds had flowed in. The Metaverse ETF has risen by about 32% from its listing until the 30th, meeting investor expectations.
On the other hand, individual investors bought TIGER China Hang Seng Tech worth 285.7 billion won last year, but the price of the ETF fell more than 30% last year, which is analyzed to have taken a big hit on individuals.
Among the top 10 personal investment stocks, Mirae Asset Management’s Tiger ETF took 7 stocks and Samsung Asset Management’s KODEX ETF took 3 stocks. This year, it is expected that more funds will flow mainly from themed ETFs. Asset managers selected △Cloud △Cyber Security △ESG (Environmental Responsibility and Transparent Management) △China as noteworthy themes and markets.
“Ransomware attacks increased by 148% compared to the previous year in the third quarter of last year,” said Sujeong Kim, manager of Mirae Asset Asset Management.
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