People in their 40s turned out to be the most active in investing in ‘single-stock leveraged products’ that track twice the daily returns of Samsung Electronics and SK hynix. This differs from the conventional pattern in the individual-stock market, where the ‘big players’ are people in their 50s and 60s.

According to Yonhap News, counts compiled on the 3rd by Korea Investment, Samsung, KB, and NH Investment & Securities showed that over the four trading days from May 27, the product launch date, to June 1, the number of investors in 14 single-stock leveraged products (excluding two inverse products) was 70,850. The total amount invested was 3.2755 trillion won, and the average investment per person was 46.23 million won.

By age group, those in their 40s numbered 20,489 (28.9%) and invested a total of 1.0225 trillion won (31.2%). They were the largest across all age groups both in number of investors and in amount invested. This is interpreted as reflecting the characteristics of single-stock leveraged products, which come with high risk. In the conventional stock market, people in their 50s and 60s are regarded as ‘big players’.

Looking at the status of stock owners of listed companies as of the December year-end last year compiled by the Korea Securities Depository, the number of individual shareholders was highest among those in their 50s (23.1%), followed by those in their 40s (21.8%). In terms of the number of shares owned, those in their 40s (18.6%) followed those in their 50s (34.4%) and 60s (26.6%).

For single-stock leveraged products, the number of investors was highest among those in their 40s, followed by those in their 50s (28.8%), 30s (22.2%), and 60s (11.5%). Those in their 20s accounted for 6.5%, bringing the share of investors aged 40 or younger close to about 60% of the total. By amount invested as well, the order was 40s, 50s (27.9%), 30s (19.4%), 60s (12.9%), and 20s (5.5%).

However, average investment per person was highest among those aged 70 or older at 64 million won, followed by those in their 60s (51 million won), 40s (50 million won), and 50s (45 million won).

A securities industry official said, “Although these products are attracting attention in the market, it appears that younger investors, who are willing to tolerate the volatility in hopes of higher returns, show a higher preference for them than older investors, who are reluctant to be exposed to volatility.”

Meanwhile, to invest in single-stock leveraged products, investors must complete a basic course (1 hour) and an advanced course (1 hour) at the Korea Institute of Financial Investment under the Korea Financial Investment Association. As of the 31st, 380,000 people had applied for the courses, and roughly 350,000 of them had completed the full two-hour training.