Samsung, SK Hynix leveraged ETFs still down 52% and 77% from June 25 peak

Samsung Electronics and SK Hynix have recently rebounded, but investors who bought single-stock leveraged ETFs tied to the two chipmakers near the June 25 peak are still facing heavy losses. Korea Exchange data cited by Korean media showed that seven Samsung Electronics leveraged ETFs were down 51.64% to 52.76%, averaging a 52.25% loss, while seven SK Hynix leveraged ETFs were down 75.98% to 76.75%, averaging a 76.51% loss. A 1 million won investment made at that point would now be worth about 478,000 won and 235,000 won, respectively, and the two ETF groups would need to rise about 109.4% and 325.7% to break even. Because these products are built to deliver twice the underlying stock's daily return rather than simply doubling cumulative share-price moves, repeated daily rebalancing and volatility decay can leave investors far behind even after a rebound; earlier calculations cited in Korean media showed Samsung Electronics shares were down 23.43% from their June 25 close as of Aug. 14 and SK Hynix had fallen 43.61%.

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