Totally out of control? Total assets of leveraged ETFs tracking Korean chip stocks reach $31.4 billion, with SK Hynix product size exceeding 4 times its average daily trading volume

Odaily Planet Daily reported that The Kobeissi Letter posted on X platform stating that the leverage level of South Korean chip stocks is at a dangerously high level. The total assets of single-stock leveraged and inverse ETFs tracking SK Hynix are approximately $19 billion, exceeding 4 times the stock's average daily trading volume of about $4.5 billion this year. Leveraged ETF assets related to Samsung are approximately $12.4 billion, 176% higher than its average daily trading volume of about $4.5 billion.

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