Korean investors shift leveraged ETF demand to US-listed products

  • South Korean retail investors shifted leveraged ETF demand toward US-listed products.
  • Korean investors own unusually large portions of several leveraged ETFs.
  • Trading volumes recently disrupted daytime access to popular leveraged products.

South Korean retail investors appear to be moving demand for leveraged exchange-traded funds from domestic single-stock products into US-listed funds after regulators tightened trading rules at home. Korean investors now hold unusually large portions of several leveraged ETFs, giving them an outsized presence in parts of the US market. Their trading activity may also be contributing to volumes that recently disrupted daytime access to popular products.

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