Even without factoring in the September and October declines, individual investors lose ‘6.3 trillion won’ on leveraged Samsung Electronics and SK Hynix products

[Financial News] Individual investors who invested in single-stock exchange-traded products (ETPs, including ETNs) lost more than 6 trillion won between the launch of the products and mid-August, according to figures.  
According to data jointly submitted by the Financial Supervisory Service to the National Assembly’s Political Affairs Committee on the 21st, individual investors at 10 securities firms (Kiwoom, Mirae, Samsung, NH, Korea, KB, Shinhan, Meritz, Daishin and Hana) recorded total losses of 6.313 trillion won from May 27, the launch date of single-stock ETPs, through August 14.
Losses realized through trading totaled 2.3242 trillion won, while valuation losses on holdings came to 3.9888 trillion won. The Financial Supervisory Service calculated total gains and losses by adding the realized gains and losses in accounts that had traded the products at least once since their launch to the unrealized gains and losses on holdings as of the reporting date. Total losses stood at 6.0033 trillion won at the end of July.
Trading losses totaled 1.9638 trillion won, while valuation losses came to 4.0395 trillion won. This means losses increased by about 310 billion won by August 14. Investors in their 40s recorded the largest losses among the age groups.
The total losses in 165,200 investment accounts held by people in their 40s came to 2.053 trillion won. Investors in their 50s recorded losses of 1.8655 trillion won across 158,000 accounts, while those in their 30s lost 1.0912 trillion won across 117,300 accounts.
Accounts held by investors in their 40s and 50s made up about 59% of all trading accounts, while the losses incurred by these two age groups accounted for about 62% of the total. The account count covers accounts that traded single-stock ETPs at least once from May 27 through August 14.
[email protected] Lee Jeong-hwa Reporter