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2026-07-14 11:48:11
[South Korean chip leveraged ETFs nearly halved in two months, retail investors’ leveraged investment risks explode] (1) Since their listing in late May, the prices of more than ten leveraged ETFs tracking Samsung Electronics and SK Hynix have fallen by about half. Among them, the largest, “SAMSUNG KODEX SK Hynix Single Stock Leverage” (with assets under management of about US$3.4 billion), has fallen by about 45%, and has retreated by more than 60% from its high point in June. (2) The plunge of such products has caused South Korean retail investors who prefer to amplify their returns through leverage to face serious paper losses, highlighting the high-risk nature of leveraged bets on a single chip giant. (3) The operating mechanism of leveraged ETFs itself will exacerbate volatility - in order to maintain a fixed leverage ratio, issuers usually need to buy high when the market is rising and sell low when the market is falling, thereby amplifying the two-way fluctuations of the market and further deepening the potential losses of investors.
