Ahead of Children's Day, an analysis of the domestic stock yields in minors' accounts revealed that most were negative (-). Despite the U.S. stock market underperforming since President Donald Trump's inauguration, foreign stocks had relatively higher revenue.
According to domestic Securities Company A on the 5th, the most held domestic stock among its minor clients was Samsung Electronics for the second consecutive year. However, the average evaluation profit rate (cumulative basis) dropped from 8% as of May 3 last year to -20% as of April 29 this year. During the same period, the price of Samsung Electronics fell from 77,600 won to 55,800 won, a decrease of 27.1% (22,800 won).
The situation was similar for other domestic stocks held by numerous minor clients. The average evaluation profit rate for Samsung Electronics preferred stocks, which were the second most held, was -26%. Following that, ▲Kakao -54% ▲NAVER -27% ▲Hyundai Motor -4% ▲Korean Air -21% ▲LG Electronics -38%, with 7 out of the top 10 stocks experiencing losses.
Excluding exchange-traded funds (ETFs) tracking U.S. stock indices such as TIGER U.S. S&P 500 and KODEX U.S. S&P 500, only SK hynix among the domestic stocks mostly held by minor clients showed a solid performance with a profit rate of 43%. However, SK hynix also saw its profit rate drop by more than 10 percentage points as it fell from its peak of 248,500 won in July last year to 180,800 won on April 29 this year.
In contrast, minor clients who invested in foreign stocks performed well. The most held stock among them was Apple. The average evaluation profit rate for Apple increased from 20% on May 3 last year to 39% on April 29 this year. Tesla, the second most held by clients, also rebounded with its average evaluation profit rate rising from -8% to 25% during the same period. Considering that both Apple and Tesla fell by 18% and 40%, respectively, from their highs at the end of last year, it seems they succeeded in low-point buying.
Additionally, many minor clients saw profits from stocks they purchased such as ▲QQQ (tracking daily gains of the Nasdaq 100) 25% ▲Microsoft 32% ▲Google 26% ▲SPY (tracking daily gains of the S&P 500) 16% ▲TQQQ (triple the daily gains of the Nasdaq 100) 11% ▲QLD (double the daily gains of the Nasdaq 100) 17%.
However, not all minor clients who bought foreign stocks came out ahead. In the case of Nvidia, the average evaluation profit rate plummeted from 246% a year ago to 96%. The drop was larger than the approximately 29% decline in Nvidia's stock price compared to its all-time high at the end of January this year. It is believed that during the sharp rise in Nvidia's stock price last year, the average buying price also increased.
Due to the poor performance of domestic stocks compared to foreign stocks, the number of minor clients who are individual investors in U.S. stocks, referred to as 'Seo-hak Gaemi', is expected to continue increasing. Following President Trump's announcement of mutual and universal tariffs, during a significant market move in April this year, 4 out of the top 7 domestic stocks purchased by minor clients were ETFs based on U.S. stock indices.