Single-Stock Leveraged ETFs for Samsung and SK Hynix Leave 82-90% of Investors in Losses on July 8

According to Economist, on July 8, investors in single-stock leveraged ETFs tracking Samsung Electronics and SK Hynix faced significant losses due to negative compounding effects. Data from NH Investment & Securities showed that 82% of KODEX Samsung Electronics Leveraged ETF investors and over 90% of KODEX SK Hynix Leveraged ETF investors were in loss positions. Since the products' launch, Samsung shares fell 18.3% and SK Hynix declined 24.5% from their peaks, amplifying losses for leveraged product holders.

Daily average trading volume for single-stock leveraged ETFs reached approximately 9.6 trillion Korean won, with turnover rates exceeding 105%, indicating excessive short-term speculation. Politician An Chul-soo called for delisting these products, citing 212 trillion won in concentrated capital and increased market volatility. However, regulators noted that actual delisting remains unlikely under current regulatory requirements; instead, measures like raising minimum deposits or restricting trading to professional investors are being considered.