Retail investors in South Korea are expected to divest from their fervent interest in US shares during the epidemic and cut their holdings for the first time in almost ten years.
Data from the Korea Securities Depository shows that day traders have sold US equities for a net $296 million amount so far this year, the first sell-off since 2014.
Investors mostly sold off large IT companies. A leveraged exchange-traded fund that aimed to achieve three times the daily performance of the Nasdaq 100 Index witnessed an outflow of $803 million, while Nvidia Corp., one of the most regularly traded US stocks, experienced an outflow of $945 million. Through November 2, investors reduced their holdings in Apple Inc., Alphabet Inc., and Tesla Inc. totaling at least $278 million apiece.