[비즈한국] The number of exchange-traded fund (ETF) investors under the age of 20 has surpassed 300,000. A clear trend is emerging where securities accounts in children's names are being used for long-term asset management and financial education beyond simple financial experience.
According to the financial investment industry on the 5th, as of the end of April this year, the number of investors under 20 investing in domestic and international ETFs through five brokerage firms—Mirae Asset Securities006800, Korea Investment & Securities, NH Investment & Securities005940, Samsung Securities016360, and KB Securities—was recorded at 302,669. This is a 37.3% increase from 220,424 at the end of last year. In the four months from January to April this year, the number grew by over 82,000.
Compared to 134,569 at the end of December 2024, the scale of the increase is even larger. Over a period of one year and four months, the number rose by approximately 168,000, reaching a growth rate of 124.9%. As of the end of last year, the total number of investors under 20 holding stocks of domestic listed companies was 769,624, meaning that about 40% of them own ETFs.
Preference for U.S. index ETFs; domestic benchmark ETFs also rank high
The ETF most held by investors under 20 was the 'TIGER US S&P500', which tracks the U.S. Standard & Poor's (S&P) 500 index. As of the end of April, the valuation reached 231.9 billion won. This is an increase of 72.4 billion won from 159.5 billion won at the end of last year. The growth rate was 45.4%, significantly outperforming the S&P 500 index's rise during the same period.
Many of the top-held ETFs included products that track major U.S. indices such as the S&P 500 and Nasdaq. This suggests that the expectation that the U.S. stock market will trend upward in the long term is being reflected in the management of minor accounts.
Domestic benchmark ETFs also rose to the top ranks. The 'KODEX 200', which was not among the top 5 holdings at the end of last year, rose to second place in terms of valuation held by investors under 20 at some brokerage firms by the end of April this year. As the domestic stock market shows an upward trend, interest in products that invest in a diversified range of major domestic companies, beyond just U.S. index ETFs, seems to have increased.
Minor accounts expanding as an alternative to savings accounts
The trend of increasing minor securities accounts is also confirmed by analysis from other brokerage firms. According to Shinhan Securities' analysis of data on account openings for minors and their parents, as well as domestic and international stock trading in the first quarter of this year, the number of minor account openings increased by 272% compared to the same period last year. The average balance per account was approximately 10 million won.
Investment targets were focused on large-cap stocks and ETFs. In the Shinhan Securities analysis, the domestic stock most traded by minor clients was Samsung Electronics005930 common stock, followed by TIGER US S&P500 ETF, Samsung Electronics preferred stock, SK Hynix, and KODEX 200 ETF. In foreign stock trading, along with individual stocks such as Tesla, Apple, and Nvidia, U.S. index ETFs like the Invesco QQQ Trust, SPDR S&P500 ETF, and Vanguard S&P500 ETF were also among the top ranks.
Investment experience in minor accounts consisted of approximately 52% in domestic stocks, 17% in foreign stocks, and the remainder in other financial products. In overseas investments, the proportion of indirect investment through ETFs was relatively higher than individual stocks. Shinhan Securities analyzed that minor accounts show a long-term, educational investment style where trading frequency is low and large-cap stocks and ETFs are held for a certain period.
Non-face-to-face account opening also increasing
The methods for opening accounts for minors are also changing. According to Shinhan Securities, 58.4% of new minor accounts in the first quarter of this year were opened non-face-to-face. This means that opening accounts in children's names, which used to be centered around visiting branches, is shifting to mobile-based processes.
The securities industry is paying attention to the trend of minor accounts establishing themselves as long-term investment tools that replace savings accounts. This is because children's asset management, which used to center on deposits and savings, is expanding to diversified investments using stocks and ETFs. In particular, ETFs are perceived as products easier for parents to include in their children's accounts because they can distribute volatility compared to individual stocks.
However, the expansion of minor accounts also leaves tasks related to financial education and investment risk management. While ETFs offer the benefit of diversified investment, they are not principal-protected products. Losses can occur depending on domestic and international stock market fluctuations, and foreign index ETFs are also affected by exchange rate changes. As the number of accounts in minors' names increases, it will become increasingly important to provide explanations and education to ensure that the investment decision-making process, led by guardians, sufficiently understands product structures and risks.