Single-stock leveraged ETFs tied to Samsung Electronics and SK Hynix saw their assets under management collapse by roughly 50% from peak levels. Launched on May 27 on the Korea Exchange, these products attracted approximately 14 to 15 trillion won ($9.4 to $10.4 billion) in net inflows from retail investors within weeks. The largest fund, the KODEX SK Hynix Single Stock Leverage, peaked at around $3.4 billion in AUM before falling 45% from its debut price, with share prices dropping from around 20,000 won to below 10,000 won by late July. South Korean regulators responded by raising the minimum deposit requirement to 30 million won, prohibiting cash purchases, imposing an advertising ban, and halting new product launches. Roughly 1.77 trillion won in net selling occurred between late July and late August.
Source: Read the original article
