South Korea to Launch Single-Stock Leveraged ETFs Tied to Samsung and SK Hynix

South Korea will debut 16 single-stock leveraged and inverse ETFs tied to Samsung Electronics and SK Hynix, with projected net inflows of up to KRW 5.3 trillion as eight asset managers prepare listings.

Summary

South Korea is set to launch 16 single-stock leveraged and inverse ETFs linked to Samsung Electronics and SK Hynix, expanding the country’s market for complex exchange-traded products. Eight asset managers will list the products on Wednesday, and Mirae Asset Securities will also introduce two exchange-traded notes tied to the same theme. The launch is projected to attract net inflows of up to KRW 5.3 trillion, adding scale to a rollout that could increase trading activity and market volatility around the two underlying stocks.

Terms & Concepts
  • Leveraged ETF: An exchange-traded fund designed to amplify the daily return of an underlying asset, often through derivatives or borrowed exposure.
  • Inverse ETF: An exchange-traded fund structured to move opposite to the daily performance of its underlying asset.
  • ETN: An exchange-traded note is a debt instrument traded on an exchange that tracks the performance of an underlying asset or strategy.