Korean Individual Stock Leveraged ETFs' Nine-Day Loss Exceeds 8.8 Trillion Won

According to Odaily, the South Korean domestic stock market has experienced sharp fluctuations over the past nine trading days, with estimated valuation losses on individual stock leveraged ETFs, which have a high proportion of retail investors, accumulating to over 8.8 trillion won. Based on data released by FnGuide Quantwise and Mirae Asset Securities on the 15th, four individual stock leveraged ETFs tracking Samsung Electronics and SK Hynix, issued by Mirae Asset Global Investments and Samsung Asset Management, suffered cumulative valuation losses of 8.8337 trillion won between July 1st and 13th.

During the same period, the assets under management (AUM) of these ETFs fell from 14.3518 trillion won to 8.9389 trillion won, a decline of 37.7%. The total AUM of all 14 individual stock leveraged ETFs listed in South Korea tracking Samsung Electronics and SK Hynix also dropped by 41.4% over the period, from 15.9349 trillion won at the end of June to 9.3386 trillion won on the 13th of this month. Among these, the AUM of Samsung Electronics leveraged ETFs decreased by 35.3%, while SK Hynix leveraged ETFs saw a reduction of 44.9%.

Data from the Korea Capital Market Institute shows that as of June 19th, individual investors had cumulatively purchased a net 8.2 trillion won in single-stock leveraged ETFs, accounting for approximately 60% of the AUM of related ETFs. This suggests that a significant portion of the recent losses may be concentrated among retail investors. (Source: Jin Shi)