Business & Finance
Samsung, SK Hynix and Leveraged ETFs Drive 70% of Korea Trading
Key Points
Samsung, SK Hynix and Leveraged ETFs Drive 70% of Korea Trading Retail fervor over leveraged ETFs in South Korea has grown so intense that the products, together with the two chipmaker stocks they track, now make up more than 70% of trading value in the $4.3 trillion market. The anomaly has sparked criticism of regulators for allowing such risky vehicles, with one opposition lawmaker even calling for their delisting. Volatility has surged since the exchange-traded funds tracking twice the...
Samsung, SK Hynix and Leveraged ETFs Drive 70% of Korea Trading
Retail fervor over leveraged ETFs in South Korea has grown so intense that the products, together with the two chipmaker stocks they track, now make up more than 70% of trading value in the $4.3 trillion market.
The anomaly has sparked criticism of regulators for allowing such risky vehicles, with one opposition lawmaker even calling for their delisting. Volatility has surged since the exchange-traded funds tracking twice the daily returns of Samsung Electronics Co. and SK Hynix Inc. debuted in late May, designed to draw more retail money into the local market.