Korean chip-linked leveraged ETFs see nearly $1 billion in August outflows

Korean leveraged ETFs (funds designed to amplify daily returns) tied to Samsung Electronics and SK Hynix have recorded nearly $1 billion in outflows so far in August, as enthusiasm for artificial-intelligence trading strategies waned and regulators moved to curb investment demand. Products linked to Samsung Electronics saw $381 million in withdrawals, while those tracking SK Hynix lost $601 million. It was the first monthly net outflow for the products since their launch at the end of May. The funds target twice the daily price moves of individual chip companies and are viewed as contributing to broader market volatility. The shift followed a global selloff in AI stocks in July, when the Korea Composite Index suffered a historic 22% plunge. South Korean regulators subsequently raised the minimum deposit requirement for new investors and required them to complete five days of simulated trading.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.