On the 8th, when the domestic stock market swung sharply, prices of single-stock leveraged exchange-traded funds (ETF) that track the share-price moves of Samsung Electronics and SK hynix by 2 times also whipsawed.
As shares of Samsung Electronics and SK hynix fell sharply, leveraged ETFs that track the index direction by 2 times are plunging, while "inverse double" ETFs that track the share price in the opposite direction by 2 times are soaring.
Right after the market opened, shares of Samsung Electronics and SK hynix fell around 9% each. After the circuit breaker (temporary trading halt) triggered by the market plunge was lifted, the declines narrowed somewhat, but steep losses are continuing.
Accordingly, leveraged ETFs that track these single stocks by 2 times are also down more than 10%. In contrast, "inverse double" ETFs that track in the opposite direction by 2 times are up around 10%.
These 16 single-stock leveraged ETFs were listed on the stock market simultaneously on the 27th of last month. On the first day of listing, as shares of Samsung Electronics and SK hynix rose, leveraged ETFs climbed across the board and surged through the 1st of this month.
However, as the U.S. job market showed strength, raising concerns that monetary policy could tighten more than expected, global tech stocks fell, and over the past three trading days single-stock inverse double ETFs rose sharply.
Prices of single-stock leveraged ETFs have fallen to levels below the first day of listing, but prices of inverse double ETFs have risen above the first day of listing.