SK hynix Sees Surge of Leveraged ETFs Just Three Days After Nasdaq Debut

Consecutive Listings on the New York Stock Exchange on July 13-14

Single-stock leveraged exchange-traded funds (ETFs) based on SK hynix's American Depositary Receipt (ADR) are set to be listed on the New York Stock Exchange one after another this week. Just days after SK hynix made its debut on the U.S. stock market, related derivative products are rapidly expanding.

SK hynix's ADR was listed on the Nasdaq on the 10th (local time). New York (USA) = Special Correspondent Yoonju Hwang.

According to announcements from U.S. ETF management companies on July 12 (local time), firms such as Leverage Shares, ProShares, GraniteShares, and Kogi Funds plan to launch leveraged and inverse ETFs that track the daily performance of SK hynix ADR between July 13 and 14.

Leverage Shares will introduce 'SKHX,' an ETF that seeks to deliver twice the daily return of SK hynix ADR, and 'SKHZ,' an inverse ETF that moves in the opposite direction, on July 13. ProShares is also set to list its own 2x leveraged ETF, 'SKHU,' on the same day.

GraniteShares will launch both a 2x leveraged ETF, 'SKUU,' and a 2x inverse ETF, 'SKDD,' on July 14. Kogi Funds is likewise scheduled to introduce a 2x leveraged ETF linked to SK hynix ADR on the same day.

Direxion has also announced plans to release a 2x leveraged ETF, 'SKHL,' though it has not specified the exact listing date. The actual start of trading may vary depending on exchange approval and market conditions.

In the U.S. ETF market, single-stock ETFs that seek to deliver twice the daily return of, or move inversely to, major technology stocks such as Nvidia, Tesla, Alphabet, and AMD are being actively traded. Following SpaceX’s Nasdaq listing last month, related leveraged ETFs were also launched in quick succession.

On July 10, SK hynix ADR closed at $168.49, up 13.08% from its IPO price of $149, marking a successful debut on the New York Stock Exchange. The sharp movements in share price immediately after listing appear to have prompted ETF operators to accelerate the rollout of related products.

Single-stock leveraged ETFs are designed to track twice the daily return of the underlying stock by using derivatives such as futures and swaps. Since they are managed based on daily returns rather than cumulative long-term returns, losses can also accelerate rapidly in highly volatile markets.

Particularly in the U.S. stock market, where there is no daily price limit for individual stocks, price swings can be more dramatic, resulting in even greater volatility for leveraged and inverse ETFs. Some in the market have raised concerns that the concentrated launch of leveraged products linked to SK hynix ADR in a short period could amplify volatility in the underlying stock. Similar concerns have been raised in the Korean stock market, where leveraged ETFs based on single stocks like Samsung Electronics and SK hynix have been said to intensify supply and demand imbalances and increase price volatility.

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