Single-Stock Leveraged ETFs Trigger Losses for South Korean Retail Investors One Month After Launch

According to Maeil Business Newspaper, single-stock leveraged ETFs in South Korea have become a volatile market driver after launching just one month ago, yet retail investors are facing significant losses. The KODEX SK Hynix Single-Stock Leveraged ETF surged to a market cap of 5.1 trillion won, but negative compounding effects have inflicted losses even when underlying stocks gained. For instance, Samsung Electronics rose 0.81% by July 3, yet its leveraged ETF counterpart fell 10.75%, while SK Hynix climbed 8.11% but its leveraged product declined 1.35%. Asset managers advised holding periods no longer than one week; however, many retail investors with smaller assets remain holding at losses, with average holding periods at 15-17 days.
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