From 9,000 to 6,000, "My Money Melted away"... Desperate 2030s Turn to Leveraged ETFs

Young investors in their 20s are increasingly suffering losses after aggressively investing in single-stock leveraged ETFs amid the extreme volatility of the domestic stock market this year.

While young adults starting their careers are actively investing to make up for the economic gap, experts point out that due to their lack of investment experience, the potential for losses is high, calling for supportive measures such as expanded educational content.

According to data submitted to Representative Kang Myung-gu of the People Power Party by the Korea Financial Investment Association, out of approximately 740,000 investors who completed advanced education on single-stock leverage from last April to July 13, those in their 20s accounted for about 80,000, reaching 11%.

When expanding the range to those in their 30s, young people in their 20s and 30s made up 35% of all investors who completed the education.

Analysts suggest that the reason young adults early in their careers invest in single-stock leverage is to quickly close the economic gap through aggressive investments, given their lack of accumulated capital.

Yoon Dong-yol, a professor of business administration at Konkuk University, analyzed, "Young people in their 20s increasingly perceive that it is difficult to purchase a home or build the desired level of assets through earned income and savings alone," adding, "Even after experiencing losses, rather than leaving the market, a psychological tendency to try to make up for it in the next bull market may appear."

However, some point out that since the younger generation is relatively lacking in investment experience and knowledge compared to other age groups, the possibility of suffering losses is high.

As a result of the Korea Financial Consumer Protection Foundation assessing the knowledge level regarding high-risk ETF investments among 2,500 adult men and women aged 25 to 64 from November to December of last year, the average correct answer rate was only 53.8%, and the understanding of the 2030 generation was found to be lower than that of other age groups.

In the financial investment industry, given that young people have a high proportion of obtaining investment information through social media and other channels, opinions suggest that information accessibility should be expanded by developing short-form and digital educational content tailored to the eyes of the younger generation.

Reported by Kim Taewon | Video by Kim Hye-ju | Graphics by Yook Do-hyun | Produced by SBS Digital News
※ Please note: This article was translated by AI and may contain errors.