An exchange-traded fund (ETF) that tracks twice the daily share-price gain of SK hynix jumped more than 18% on its first morning after debuting on the Hong Kong stock exchange. This is the first time in the world that a leveraged ETF composed of a single SK hynix stock has been launched.
On the 16th, according to the Hong Kong Exchanges and Clearing, "CSOP SK hynix Daily 2X Leveraged (7709.HK)" finished the morning session at 9.25 Hong Kong dollars. It rose 18.96% (1.474 Hong Kong dollars) from the listing price. At the same time, it was nearly three times SK hynix's share-price gain (6.7%). This suggests investor demand was that strong.
Hong Kong's CSOP Asset Management said it listed the CSOP SK hynix Daily 2X Leveraged on the day. Following the launch in May of leveraged and inverse ETFs that track twice the daily share-price rise or fall of Samsung Electronics, CSOP Asset Management also rolled out the SK hynix leveraged ETF.
Ding Chen, CEO of CSOP Asset Management, said, "With the world's only SK hynix leveraged ETF listed on the Hong Kong market, an opportunity has opened to double the returns from SK hynix's steep growth in the AI-centered semiconductor market."
Because of the characteristics of leveraged products, the CSOP SK hynix Daily 2X Leveraged carries a relatively high total fee of 2% per year. The minimum transaction unit is also 100 shares. As it is traded in the Hong Kong dollar, which is linked to the value of the U.S. dollar, not only SK hynix's share price but also the dollar's value is reflected in the ETF's returns.