In a remarkable feat, South Korean retail investors have eclipsed the $100 billion mark in U.S. stock holdings for the first time! This milestone underscores the escalating appetite for Big Tech stocks and high-octane leveraged exchange-traded funds (ETFs) as Korean traders pursue tantalizing returns overseas.

Korean Tech Stock Grows

According to data from the Korea Securities Depository, as of November 7, South Korean retail held a combined $101.4 billion worth of U.S. equities, reflecting an impressive 64% surge from last year’s total. The current boom comes against the backdrop of South Korea’s struggling Kospi Index, which ranks among the world’s worst-performing indices in 2024. In response, many investors shifted focus to the U.S. market, where the potential for higher returns has drawn more attention.

Korean investors have sold 4.4 trillion won (approximately $3.2 billion) in Kospi stocks this year, despite government efforts to enhance the local market through improved corporate governance. As the Kospi has been underperforming, individual investors are increasingly turning to the U.S. stock market in search of better returns and diversification.

Big Tech Stocks Lead the Charge

Tesla Inc. is the most popular stock among South Korean investors, with an astonishing $16.7 billion in holdings. It reflects confidence in the electric vehicle sector’s future growth. Nvidia Corp. follows closely with $13.8 billion in shares, as semiconductor stocks continue to attract attention. Apple Inc. and Microsoft Corp. also rank highly, with holdings of $4.6 billion and $3.6 billion, respectively.

In addition to individual stocks, leveraged ETFs have become increasingly popular among Korean investors. Many of these ETFs aim to triple the daily returns of the Nasdaq 100 Index and U.S. semiconductor stocks. These funds are designed for investors who are willing to take on higher risks in pursuit of amplified returns.

Nonetheless, The explosive rise of South Korean retail traders in the U.S. equity market signals a dramatic shift toward global diversification. As the local landscape faces hurdles, Korean investors are swiftly migrating to international arenas for growth, particularly in high-flying Big Tech and adventurous ETFs.