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South Korean retail investors are poised to reduce their exposure to US equities for the first time in nearly a decade, marking a significant departure from their robust interest in American stocks during the pandemic.
According to data from the Korea Securities Depository, day traders have sold a net total of $296 million worth of US shares so far this year, signifying the first outflow since 2014.
This divestment has been primarily directed towards major technology companies. Among the most actively traded US equities, Nvidia Corp. experienced an outflow of $945 million, while a leveraged exchange-traded fund, designed to provide three times the daily performance of the Nasdaq 100 Index, saw an outflow of $803 million. Notably, traders also reduced their stakes in companies like Apple Inc., Alphabet Inc., and Tesla Inc., with each seeing at least $278 million in reductions through November 2.
The shift in South Korean investors’ sentiment towards US stocks underscores the evolving dynamics in the global stock market and the influence of regional factors on investment decisions.
