Tradr ETF President: "Single-Stock Leverage Did Not Cause Market Volatility"

Russell Tensor Holds Press Conference in Seoul on the 17th
First Single-Stock Leveraged ETF Listed in the U.S.

Russell Tensor, President of Tradr ETFs, a U.S. leveraged ETF brand, stated that he does not agree with the view that the launch of single-stock leverage products has increased volatility in the Korean stock market.

At a press conference held on the afternoon of the 17th in Yeouido, Seoul, Tensor said, "The main means of gaining leveraged exposure are derivatives and margin trading, and whether it is the U.S. or Korea, the proportion of leveraged ETFs is very small compared to the overall market size." He added, "I don't quite understand how such a small segment like leveraged ETFs could be said to sway the market as a whole."

Russell Tensor, President of Tradr ETFs, is speaking at a press conference held in Yeouido, Seoul. Access Communication

Tradr operates as the leveraged and inverse ETF brand under AXS Investments. AXS Investments was the first to introduce single-stock leveraged ETFs to the U.S. market in 2022. Currently, Tradr manages assets exceeding $5 billion, of which $500 million—or 10%—is traded and held by Korean investors.

As for the recent causes of global stock market volatility, Tensor cited macroeconomic factors and the rise of AI as independent reasons. He explained, "With large-scale investments flowing into AI and enjoying high growth, corporate valuations are at their highest levels ever compared to the past." He further noted, "In this overheated market environment, whenever negative news emerges—such as issues in the macroeconomy, inflation, funding rates, or geopolitical tensions—panic tends to ensue."

He added, "When macroeconomic tensions intersect with record-high levels of growth, it leads to volatility like what we've seen recently."

Tensor also noted that when launching leveraged and inverse ETFs, market demand is prioritized over factors such as a company's value or growth prospects. "The most important consideration is market demand, and the key indicators for that are dollar trading volume and volatility," he said. "We do not form any particular view on the fundamentals of the underlying asset." He elaborated that the recently launched Coupang leveraged ETF (CPNX) was created from this market-demand-centric perspective.

Tensor also indicated that the company is considering launching leverage products based on KOSPI-listed stocks in the future. He said, "We are considering launching products with KOSPI-listed stocks as the underlying assets," and added, "While I can't mention a specific product, it will involve the technology sector."

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