Samsung, SK Hynix Leverage ETFs Fall 12-13% on July 7 as Net Assets Decline 15.3%

According to Korea Exchange and Koscom data, 14 single-stock leverage ETFs tracking Samsung Electronics and SK Hynix fell 12-13% on July 7, with intraday losses reaching around 20%. The products fell below their launch price of 20,000 won as both underlying stocks declined 6-7%.

Net assets of the 16 single-stock leverage and inverse ETFs dropped 15.3% to 14.9 trillion won from 17.6 trillion won as of June 25, with Samsung and SK Hynix leverage products facing estimated losses of 400 billion and 600 billion won respectively. Analysts noted that leverage products amplify underlying asset movements 2x while generating negative compounding effects over time, particularly as volatility increases.