Domestic individual investors who were investing in overseas stocks have recently been more actively purchasing virtual asset stocks, such as stablecoin-related stocks, rather than large US technology stocks. It is analyzed that the relative strength of the domestic stock market and exchange rate factors have changed the flow of investment funds.
The International Financial Center explained in an analysis report released on August 11 that since June, as the domestic stock market recorded higher returns than major overseas stock markets and the Korean won showed strength, many individual investors reduced their proportion of overseas stock holdings. In fact, the net purchase volume of overseas investors, known as 'Seohakgaemi', averaged $3.8 billion per month until the first half of the year, but turned to net selling from May.
In particular, instead of executing funds centered on US big tech representative stocks like Apple and Microsoft as in the past, investors are now shifting their interest to stocks related to the virtual asset industry. The 'Genius Act' passed in the US in June is interpreted as fueling this trend. This bill contains provisions that clarify stablecoin regulation, stimulating investment expectations for related companies.
Accordingly, the proportion of virtual asset-related stocks among the top 50 net purchase stocks by individual investors was 8.5% until January, but expanded significantly to 36.5% in June and 31.4% in July. Notably, in June, Circle, the issuer of USDC (US dollar-based stablecoin), topped the list of most net-purchased stocks. In the same month, Coinbase (virtual asset exchange) and Bitmain (Ethereum holding company) also made it to the top net purchase list.
In contrast, the investment proportion of seven US big tech stocks (M7), which were the center of individual investor net purchases until early this year, has significantly decreased. Their average net purchase volume dropped from $1.68 billion per month in January-April to $440 million in May and only $260 million in July. Meanwhile, in June, an unusual phenomenon occurred where the 'MSCI Korea Index 3x Leveraged ETF', which directly tracks the Korean stock market's rise, was included in the top individual net purchase stocks.
The International Financial Center pointed to concerns about the impact of recent US tariff policies on the real economy as the background for the shrinking overseas buying trend, and forecast that individual investors' overseas stock purchases may not be as large as before for the time being.
This trend suggests that individual investors' overseas investment paradigm is rapidly shifting from growth stock-centered to theme-based or short-term issue-based investment. In the future, the direction of funds is expected to be fluid depending on policy changes, exchange rate trends, and the performance gap between domestic and foreign assets.
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