The single-stock leveraged exchange-traded fund (ETF) tied to SK hynix, launched on the 27th, jumped about 28% in just three trading days. Because the product tracks SK hynix shares at twice the pace, the semiconductor rally flowed straight through to the return.
Over the same period, about 28 trillion won in transaction value poured into 16 Samsung Electronics and SK hynix leveraged and inverse ETFs, indicating concentrated short-term investor demand.
On the 31st, according to the Korea Exchange (KRX) and the financial investment industry, the SK hynix single-stock leveraged exchange-traded fund (ETF) recorded a 27%–28% return three days after its launch on the 27th.
On the 27th, 16 single-stock leveraged and inverse ETFs that invest in the direction of share price rises or falls, each using SK hynix and Samsung Electronics as underlying assets, were listed simultaneously. A leveraged ETF tracks twice the return of the underlying asset, while an inverse ETF is designed to generate revenue when the underlying asset's price falls.
From the 27th to the 29th, seven of the top eight domestic ETFs by gain—excluding "TIGER 200IT Leveraged" (32.6%)—were all SK hynix single-stock leveraged ETFs.
The return was highest for "RISE SK hynix Single-Stock Leveraged" at 28.27%. It was followed by "ACE SK hynix Single-Stock Leveraged" (27.53%), "1Q SK hynix Futures Single-Stock Leveraged" (27.49%), "KODEX SK hynix Single-Stock Leveraged" (27.48%), and "KIWOOM SK hynix Futures Single-Stock Leveraged" (27.2%).
During this period, SK hynix shares rose 13.69%, from 2,052,000 won to 2,333,000 won.
SK hynix leveraged ETFs also dwarfed other products in transaction size. "KODEX SK hynix Single-Stock Leveraged" recorded 381,308,000 units in trading volume from the 27th to the 29th, the fourth largest among all listed ETFs. During the same period, transaction value was 10.9258 trillion won, ranking first. "TIGER SK hynix Single-Stock Leveraged" ranked fifth in trading volume and fourth in transaction value. "KODEX Samsung Electronics Single-Stock Leveraged" ranked sixth in trading volume and fifth in transaction value.
In the three days after listing, the 16 single-stock leveraged and inverse products logged a combined 27.871 trillion won in transaction value. On the first day of listing, the 27th, transaction value was the highest at 10.418 trillion won, followed by 9.638 trillion won on the 28th and 7.815 trillion won on the 29th. As of the 29th, the products had a market capitalization of 5.3312 trillion won and total net assets of 5.0266 trillion won.
Industry participants say massive funds concentrating in single-stock leveraged products are amplifying market volatility. On the 29th, the KOSPI 200 Volatility Index (VKOSPI) came in at 74.26. At one point intraday, it spiked to 75.27.