U.S. Asset Managers File 9 Leveraged ETF Products Tracking Kioxia Stock on July 27

According to Bloomberg, U.S. asset managers including Cogi Strategies, Granite Shares, and Turtle Capital filed at least 9 leveraged ETF products tracking Kioxia stock and American depositary receipts on July 27. The filings include 2x daily leverage ETFs and inverse ETFs targeting the Japanese chipmaker.

If approved, these would mark the first individual-stock leveraged ETFs for a Japanese company listed in the U.S. Market participants expressed concerns that the products could amplify stock volatility through daily rebalancing activities. Andrew Jackson, Japan equity strategist at Orthus Advisors, noted that leveraged ETFs, as seen in South Korea with Samsung Electronics and SK Hynix, distort normal market mechanisms and significantly increase volatility.