A leveraged exchange-traded fund (ETF) tracking SK Hynix (000660.KS), listed on the Hong Kong Exchange, has become one of the world's largest single-stock leveraged and inverse ETFs. A leveraged ETF tied to Samsung Electronics (005930.KS) also entered the global top ten, highlighting international capital's concentrated interest in Korean semiconductor-linked leveraged products.
Hong Kong-based asset manager CSOP announced on Wednesday that as of Tuesday local time, its SK Hynix Daily 2x Leveraged Product had reached an assets under management (AUM) size of $5.38 billion (approximately ₩7.90 trillion).
This scale exceeds that of the U.S.-listed Direxion Daily TSLA Bull 2X Shares ETF, making it the largest single-stock leveraged and inverse ETF globally.
Launched in October last year, it is currently the world's only single-stock leveraged ETF tracking SK Hynix. In the first quarter of this year, it recorded the highest net inflows among all global single-stock leveraged and inverse ETFs.
Investment enthusiasm from South Korean domestic investors for the product is also rising. Data from the Korea Securities Depository shows that as of Monday, local investors held shares in the ETF valued at $172.11 million (approximately ₩252.8 billion).
Leveraged ETFs linked to Samsung Electronics are also seeing continuous inflows. CSOP's Samsung Electronics Daily 2x Leveraged Product has reached an AUM of $1.65 billion (approximately ₩2.42 trillion), recently breaking into the global top ten for single-stock leveraged and inverse ETFs.
Market analysts indicate that driven by expectations for rising demand for AI chips and sustained foreign capital inflows, investment demand for leveraged ETFs tied to South Korea's two leading semiconductor companies is expanding rapidly. On Wednesday, SK Hynix's stock price rose 1.93% from the previous session, once again setting a new record high.
This month, South Korea is also set to launch domestic single-stock 2x leveraged and inverse ETFs tracking Samsung Electronics and SK Hynix.
Mirae Asset Securities analyst Yoon Jae-hong stated, "Based on the capital flow patterns observed in U.S. single-stock leveraged ETPs, under a conservative scenario, combined net inflows into Samsung Electronics and SK Hynix leveraged ETFs could reach ₩1.7 trillion. In an optimistic scenario, the scale could potentially reach ₩5.3 trillion."
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