Technology
Leveraged Chip Bets Backfire in Korea as Biggest ETF Falls 45%
Key Points
Leveraged Chip Bets Backfire in Korea as Biggest ETF Falls 45% A new breed of leveraged products tracking major South Korean chip stocks are tumbling in value, threatening steep losses for the country’s retail investors who favor the tools to pursue amplified returns. Prices for more than a dozen leveraged exchange-traded funds tracking Samsung Electronics Co. and SK Hynix Inc. have nearly halved since their listings in late May, data compiled by Bloomberg show.
Leveraged Chip Bets Backfire in Korea as Biggest ETF Falls 45%
A new breed of leveraged products tracking major South Korean chip stocks are tumbling in value, threatening steep losses for the country’s retail investors who favor the tools to pursue amplified returns.
Prices for more than a dozen leveraged exchange-traded funds tracking Samsung Electronics Co. and SK Hynix Inc. have nearly halved since their listings in late May, data compiled by Bloomberg show. The SAMSUNG KODEX SK Hynix Single Stock Leverage, the largest among them with $3.4 billion in assets under management, has fallen about 45% since its debut and is down over 60% from its June peak.