An SK hynix (000660.KS) leveraged exchange-traded fund (ETF) listed on the Hong Kong Stock Exchange has become the world's largest single-stock leveraged and inverse ETF. A Samsung Electronics (005930.KS) leveraged ETF also entered the global top 10, showing that international capital is concentrating on leveraged products based on Korean semiconductor stocks.
According to Hong Kong asset manager CSOP on Wednesday, the "CSOP SK Hynix Daily (2x) Leveraged Product" had assets under management (AUM) of $5.37778 billion (approximately 7.8995 trillion won) as of Tuesday local time. This surpassed the "Direxion Daily TSLA Bull 2x Shares," a Tesla 2x leveraged ETF listed in the U.S. market, making it the largest single-stock leveraged and inverse ETF globally.
The product was listed in October last year and is currently the only single-stock leveraged ETF tracking SK hynix in the global market. It ranked first in net capital inflows among global single-stock leveraged and inverse ETFs in the first quarter of this year.
Investment enthusiasm for the product is also spreading among Korean investors. According to the Korea Securities Depository, domestic investors held $172.11 million (approximately 252.8 billion won) worth of the ETF as of Monday.
Capital inflows are also continuing into the Samsung Electronics-based leveraged ETF. The "CSOP Samsung Electronics Daily (2x) Leveraged Product" had AUM of $1.64782 billion (approximately 2.4205 trillion won). The product also recently entered the top 10 global single-stock leveraged and inverse ETFs.
Market observers say that investment demand for leveraged ETFs based on major Korean semiconductor stocks is rapidly expanding, driven by expectations of growing demand for artificial intelligence (AI) chips combined with foreign capital inflows. SK hynix rose 1.93% from the previous day on Wednesday, hitting another all-time high.
Single-stock leveraged and inverse (2x) ETFs tracking Samsung Electronics and SK hynix will also be launched in Korea this month. Yoon Jae-hong, an analyst at Mirae Asset Securities, said, "Applying the case of U.S. single-stock leveraged exchange-traded products (ETPs), inflows into Samsung Electronics and SK hynix leveraged ETFs are estimated at 1.7 trillion won under a conservative scenario and 5.3 trillion won under an aggressive scenario."
