Vertical Surge of Over 60% in a Week... The Identity of ETFs Dominating the 'Top 7' in Returns

SK hynix Hits 2.7 Million Won Intraday, Extending Strong Rally
Single Stock Leverage ETFs See Surging Returns
Upward Earnings Revisions, ADR Listing, and Shareholder Return Expectations
Investors Should Exercise Caution with These High-Risk

As SK hynix continued its strong upward momentum and surpassed KRW 2.7 million during intraday trading, returns on SK hynix single-stock leveraged exchange-traded funds (ETFs) also soared. Over the past week, they rose by more than 60%.

According to ETF Check on June 19, ACE SK hynix Single-Stock Leveraged ETF recorded a 64.12% increase over the past week, marking the largest gain among all ETFs. It was followed by SOL SK hynix Single-Stock Leveraged ETF (63.98%), TIGER SK hynix Single-Stock Leveraged ETF (63.82%), KODEX SK hynix Single-Stock Leveraged ETF (63.74%), 1Q SK hynix Futures Single-Stock Leveraged ETF (63.62%), KIWOOM SK hynix Futures Single-Stock Leveraged ETF (63.61%), and RISE SK hynix Single-Stock Leveraged ETF (63.44%). SK hynix single-stock leveraged ETFs dominated the top spots in returns.

Samsung Electronics single-stock leveraged ETFs recorded returns in the 40% range.

Earlier this month, SK hynix experienced a downward adjustment with consecutive declines, but as the stock resumed its upward trend, returns on single-stock leveraged ETFs also increased. On the previous trading day, SK hynix closed at KRW 2,685,000, up 6.51%. The stock continued its six-day winning streak and broke through KRW 2.7 million during intraday trading. During this period, SK hynix rose by 31.10%. Its market capitalization also surpassed KRW 1,900 trillion for the first time ever. Upward revisions to earnings forecasts, the upcoming listing of its American Depositary Receipts (ADR), and rising expectations for increased shareholder returns all contributed independently to the stock's rise.

The upward trend for SK hynix is expected to continue. Securities industry analysts are now setting SK hynix’s target price above KRW 3 million, with some forecasting up to KRW 4 million. Injun Son, a researcher at Eugene Investment & Securities, stated, "The upcoming ADR listing will directly raise valuation expectations. After that, anticipation for large-scale shareholder returns, such as increased dividends, is also likely to grow."

Sunwoo Kim, a researcher at Meritz Securities, said, "The two main catalysts driving the overwhelming revaluation of SK hynix are the ADR issuance and a large-scale shareholder return in 2027. The ADR is expected to be listed in August, following approval by the U.S. Securities and Exchange Commission (SEC) in June. As a result, funds holding Micron are expected to immediately include SK hynix, leading to a sharp stock revaluation." He added, "The company's three-year shareholder return plan for 2025–2027 will also drive additional share price increases in 2027."

Recently, SK hynix’s rally has led to a surge in single-stock leveraged ETFs, but as these are high-risk products, investors should exercise caution. On the previous day, the Financial Supervisory Service issued a consumer warning regarding single-stock leveraged and inverse products based on Samsung Electronics and SK hynix as underlying assets. Previously, these single-stock leveraged ETFs suffered significant losses during market downturns. In consecutive declines, the maximum loss from the peak averaged 36.9%.

This content was produced with the assistance of AI translation services.