Updated
Updated · Bloomberg · Jul 14
Samsung KODEX SK Hynix Leverage ETF Plunges 45% as $3.4 Billion Korea Chip Bets Sour
Updated
Updated · Bloomberg · Jul 14

Samsung KODEX SK Hynix Leverage ETF Plunges 45% as $3.4 Billion Korea Chip Bets Sour

1 articles · Updated · Bloomberg · Jul 14

Summary

  • More than a dozen leveraged ETFs tied to Samsung Electronics and SK Hynix have nearly halved since listing in late May, exposing South Korea’s retail investors to sharp losses.
  • The biggest fund — SAMSUNG KODEX SK Hynix Single Stock Leverage, with $3.4 billion under management — has dropped about 45% since debut.
  • That ETF is down more than 60% from its June peak, showing how quickly amplified single-stock bets reversed as chip trades turned against buyers.
  • The slide highlights the risks of a new wave of leveraged products in Korea, where retail investors have embraced high-octane tools to chase outsized returns.

Insights

Could leveraged chip ETFs, now regretted by regulators, trigger a wider market collapse in South Korea?
How did South Korea's AI chip boom become a wealth trap for its investors in just weeks?