Business & Finance
Korea AI Rout Revives Scrutiny of $290 Billion Levered-ETF Boom
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Korea AI Rout Revives Scrutiny of $290 Billion Levered-ETF Boom South Korea’s AI-fueled selloff has put a spotlight back on one of the fastest-growing corners of retail investing: leveraged exchange-traded funds. The products have been a fixture among day traders for years, but the sharp swings in Samsung Electronics Co. and SK Hynix Inc. this week — and an expression of regret from Korea’s top markets regulator over allowing single-stock leveraged ETFs — have put fresh scrutiny on whether...
Korea AI Rout Revives Scrutiny of $290 Billion Levered-ETF Boom
South Korea’s AI-fueled selloff has put a spotlight back on one of the fastest-growing corners of retail investing: leveraged exchange-traded funds.
The products have been a fixture among day traders for years, but the sharp swings in Samsung Electronics Co. and SK Hynix Inc. this week — and an expression of regret from Korea’s top markets regulator over allowing single-stock leveraged ETFs — have put fresh scrutiny on whether they are amplifying market swings as retail enthusiasm for AI stocks begins to cool.