Total Assets of Leveraged ETFs Tracking Korean Chip Stocks Reach $31.4 Billion; SK Hynix-Related Products Exceed 4 Times Its Average Daily Trading Volume

According to Odaily, The Kobeissi Letter posted on X platform that the leverage level of Korean chip stocks has reached an out-of-control high. The total assets of single-stock leveraged and inverse ETFs tracking SK Hynix amount to approximately $19 billion, exceeding 4 times the stock's average daily trading volume of around $4.5 billion this year. Leveraged ETF assets related to Samsung stand at about $12.4 billion, 176% higher than its average daily trading volume of approximately $4.5 billion.

Additionally, the 2x leveraged long SK Hynix ETF listed in Hong Kong has assets of about $13 billion, roughly twice SK Hynix's average daily trading volume, marking the largest disparity among all major stocks tracked by leveraged ETFs. For comparison, Micron's (MU) leveraged ETF assets total approximately $9.9 billion, far below its average daily trading volume of about $27.5 billion. Tesla and Nvidia leveraged ETF assets are around $6 billion and $5.6 billion respectively, both significantly lower than their average daily trading volumes of approximately $23.6 billion and $28.8 billion.