South Korea Debuts Single-stock Leveraged ETFs
South Korea is set to launch its first single-stock leveraged exchange-traded funds linked to **Samsung Electronics** and **SK Hynix**, aiming to deliver **twice** the daily performance of each underlying share, Bloomberg and Reuters syndication reported. They are expected to appeal to the country's more than **14 million** retail investors and follow heavy inflows into Hong Kong-listed leveraged ETFs tied to Korean chipmakers, which have attracted about **$1.3 billion** year-to-date, Economic Times and Yahoo/Investing.com report. Barclays estimates rebalancing from leveraged products accounted for roughly **17%** of SK Hynix's daily volume and **10%** of Samsung's during a May 15 selloff, per Bloomberg cited by Yahoo. South Korea's Financial Supervisory Service has cautioned investors about amplified losses, and analysts cited by Bloomberg estimate potential net inflows up to **5.3 trillion won** (about **$3.5 billion**).
South Korea is set to launch its first single-stock leveraged exchange-traded funds linked to **Samsung Electronics** and **SK Hynix**, aiming to deliver **twice** the daily performance of each underlying share, Bloomberg and Reuters syndication reported. They are expected to appeal to the country's more than **14 million** retail investors and follow heavy inflows into Hong Kong-listed leveraged ETFs tied to Korean chipmakers, which have attracted about **$1.3 billion** year-to-date, Economic Times and Yahoo/Investing.com report. Barclays estimates rebalancing from leveraged products accounted for roughly **17%** of SK Hynix's daily volume and **10%** of Samsung's during a May 15 selloff, per Bloomberg cited by Yahoo. South Korea's Financial Supervisory Service has cautioned investors about amplified losses, and analysts cited by Bloomberg estimate potential net inflows up to **5.3 trillion won** (about **$3.5 billion**).
What's Your Reaction?
:max_bytes(150000):strip_icc()/GettyImages-2187410260-5afe56694791404f99c253dd8d5abe6a.jpg?#)
