Korean Individual Stock Leveraged ETFs See Paper Losses Exceed 8.8 Trillion Won Over Nine Days

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

During the same period, the assets under management (AUM) of these ETFs shrank by 37.7%, from 14.3518 trillion won to 8.9389 trillion won. For all 14 single-stock leveraged ETFs listed in South Korea tracking Samsung Electronics and SK Hynix, the total AUM also fell by 41.4%, from 15.9349 trillion won at the end of June to 9.3386 trillion won on July 13. Among these, the AUM of Samsung Electronics leveraged ETFs decreased by 35.3%, and that of SK Hynix leveraged ETFs decreased by 44.9%.

According to data from the Korea Capital Market Institute, as of June 19, individual investors had net purchased 8.2 trillion won worth of single-stock leveraged ETFs, accounting for approximately 60% of the related ETF AUM. This suggests that a significant portion of the recent losses is likely concentrated among retail investors. (Jin Shi)