TRADR ETFs warns Korean investors over long holding periods for leveraged funds

  • TRADR ETFs urged Korean investors to set loss limits and exit points before investing.
  • $438.3 million, or roughly 9%, of TRADR ETFs’ $5 billion assets was held by Korean investors.
  • TRADR ETFs launched SKHA and SKHN for two-times long and inverse SK Hynix ADR returns.

TRADR ETFs advised Korean investors to define loss limits, entry prices and exit points before buying leveraged exchange-traded funds, saying they tend to hold such products longer than U.S. investors. Because leveraged ETFs target a multiple of an underlying asset’s daily return, cumulative performance can diverge from exactly twice the asset’s return over longer periods. Korean investors held $438.3 million, or roughly 9%, of TRADR ETFs’ total net assets of about $5 billion as of the 16th. The firm recently launched SKHA and SKHN, which target two times and negative two times the daily return of SK hynix’s U.S.-listed American depositary receipts, and is preparing products linked to a potential Anthropic initial public offering. TRADR ETFs said it would consider leveraged funds if Samsung Electronics or another Korean company lists shares in the United States. Markiewicz also said Korea’s market remains relatively undervalued against its earnings potential, while rejecting the view that single-stock leveraged ETFs drive underlying share-price volatility.

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