Hanhwa Investment & Securities "The Most Preferred Investment Destination for Youth is 'US Big Tech'"

Korea Investment Trust Management announced on the 19th that the top investment keyword preferred by young people under the age of 39 is 'U.S. Big Tech.'

The investment preferences of young people were compiled using data from the ACE Exchange-Traded Fund (ETF) purchase certification event, which has been ongoing since the 28th of last month. The ACE ETF purchase certification event is being held until the 29th for young people who have received a lump sum from the maturity of the Youth Hope Savings. Those who certify the purchase of 10 or more ACE ETF shares will be entered into a draw to win prizes such as a MacBook Pro and Dyson Airwrap, with 1,104 winners in total.

According to the interim results of the event, the product most purchased by young people was the ACE U.S. Big Tech TOP7 Plus ETF (44.53%). The number of buyers was also highest for the ACE U.S. Big Tech TOP7 Plus ETF, accounting for 19.16% of the total.

The ACE U.S. Big Tech TOP7 Plus ETF includes the top 10 big tech companies by market capitalization listed on the U.S. Nasdaq stock exchange. It is characterized by focusing investments on the big tech stocks known as the Magnificent 7 (M7) among these 10 stocks. As of the previous day (18th), the top holdings included ▲NVIDIA (22.25%) ▲Amazon.com (16.08%) ▲Microsoft (15.37%) ▲Google (Alphabet A, 13.90%) ▲Apple (12.84%) ▲Meta (12.23%).

Besides the ACE U.S. Big Tech TOP7 Plus ETF, a significant number of young investors also invested primarily in the U.S. market. ETFs investing in the U.S. market ranked high both in terms of purchase volume and number of buyers. The 2nd and 3rd highest purchase volumes were ACE U.S. 30-Year Treasury Active (H) ETF (10.82%) and ACE U.S. S&P 500 ETF (8.86%), while the 2nd and 3rd highest number of buyers were ACE U.S. S&P 500 ETF (14.49%) and ACE U.S. Dividend Dow Jones ETF (12.15%), respectively.

The U.S. stock market, which includes many innovative companies such as the M7, and the U.S. bond market, which offers potential capital gains in the event of future interest rate cuts, are considered reasons for the concentration of young investors' investments.

Kim Seunghyun, ETF Consulting Manager at Korea Investment Trust Management, explained, “The AI technology stock rally has only been underway for about a year, and in the long term, the economic and technological moats of M7 companies will become even stronger. For young investors, not only stable investments but also growth theme investments for accumulating a lump sum are important, so it seems they focused on the ACE U.S. Big Tech TOP7 Plus ETF, which concentrates investments in M7.”

He added, “In addition to the ACE U.S. Big Tech TOP7 Plus ETF, ACE ETFs include various products such as the ACE Global Semiconductor TOP4 Plus ETF, which focuses on four leading companies in the semiconductor industry, and the ACE 26-06 Corporate Bond (AA- or higher) Active ETF, a maturity-matching corporate bond product. We hope you take this event as an opportunity to invest. If you are unsure which ETF to buy, you can check investment information through the ACE ETF blog or Korea Investment Trust Management’s YouTube channel.”

This content was produced with the assistance of AI translation services.