[비즈한국] Last week, the KOSPI fell by about 14%. Samsung Electronics dropped by the 17% range, and SK Hynix fell by the 24% range. When stock prices continue to decline, there is always a dilemma about whether to buy more. Before making additional purchases, it is necessary to check the total amount invested in semiconductors, including the stocks contained within ETFs.
Let’s assume you bought shares of Samsung Electronics and then purchased a KOSPI 200 ETF to diversify the rest of your investment into leading domestic companies. Let’s calculate this using the actual product, KODEX 200, as an example. The KODEX 200 moves in line with the KOSPI 200 index, which is composed of 200 major domestic companies. Of course, the same amount of money is not invested in each of the 200 companies. The structure is designed so that the weight of investment increases as the market capitalization of tradable shares grows. According to the public composition table as of the 16th on Samsung Asset Management's ETF/fund platform 'Fun ETF', the weight of Samsung Electronics in the KODEX 200 is 33.6%, and SK Hynix is 24.6%, totaling 58.2%. Even though it contains 200 companies, the money invested in these two firms accounts for more than half.
What happens if we apply this composition weight to an account with 2 million won in Samsung Electronics stock and 8 million won in KODEX 200? The Samsung Electronics shares held through the ETF are worth approximately 2.69 million won, and SK Hynix is about 1.97 million won. When combined with the directly purchased Samsung Electronics stock, the money invested in these two companies is about 6.66 million won, which is about 67% of the total 10 million won. While the amount directly spent on Samsung Electronics stock is only 20% of the total, when adding the portion held within the ETF, the weight of Samsung Electronics alone reaches about 47%. In this state, if you buy more Samsung Electronics to lower your average purchase price, the amount of money at risk in that company also increases. This means that when the stock price moves by 1% later, the amount gained or lost in your account will be even greater. If you only calculate how much you can lower the purchase price, it is easy to miss how much your potential future losses are increasing.
Even if you have diversified your investments into US stocks, you should check whether they are concentrated in businesses that are similar. Although Samsung Electronics, SK Hynix, and Nvidia are different companies, they share the common trait that semiconductor orders increase when investment in AI data centers rises. In this recent downturn, there was significant concern about how companies building data centers would raise and recover their massive investment capital. When the financial situation of companies burdened by high interest rates worsens, concerns about future orders for companies supplying semiconductors also grow. Even if they are different companies, if they earn money by relying on orders from the same customers or the boom of the same industry, they should be examined together. This is because diversifying products and investment countries does not necessarily mean that risks are evenly distributed.
After checking the weights, let’s calculate the potential losses in terms of money. In the account mentioned earlier, if Samsung Electronics and SK Hynix each fall by another 30%, the additional loss incurred from these two companies would be about 2 million won. If the prices of the remaining stocks stay the same, you lose about 20% of the total account. If other stocks fall as well, the losses will be even greater. The point is to confirm the magnitude of the loss you can bear before making additional purchases. If that amount is difficult to endure, it is better not to buy more. You could keep the new funds in a savings account for the time being or consider investment destinations that have less overlap in business with the companies you currently hold.
Just because semiconductor stocks have fallen significantly does not mean the same buying opportunity exists for all investors. Someone who has already invested most of their funds is in a different situation from someone who has held onto liquid assets waiting for a purchase. Having a positive long-term outlook on semiconductors and putting most of your investment capital into semiconductors are separate judgments.