Business & Finance
BOK Warns of Risks From Single-Stock Leveraged ETFs: Yonhap
Key Points
BOK Warns of Risks From Single-Stock Leveraged ETFs: Yonhap The Bank of Korea warned that single-stock leveraged exchange-traded funds tied to Samsung Electronics Co. and SK Hynix Inc. could deepen market concentration, amplify volatility and intensify one-way trading flows, according to a local report. “With Samsung and SK Hynix accounting for more than half of stock market capitalization and trading volume, expanding investment in single-stock leveraged ETFs could further intensify this...
BOK Warns of Risks From Single-Stock Leveraged ETFs: Yonhap
The Bank of Korea warned that single-stock leveraged exchange-traded funds tied to Samsung Electronics Co. and SK Hynix Inc. could deepen market concentration, amplify volatility and intensify one-way trading flows, according to a local report.
“With Samsung and SK Hynix accounting for more than half of stock market capitalization and trading volume, expanding investment in single-stock leveraged ETFs could further intensify this concentration,” the BOK said in a written response submitted to People Power Party lawmaker Park Sung-hoon, Yonhap reported.
[Image text:] BANKOPKOREA