Single-stock leveraged exchange-traded funds tied to South Korean chip heavyweights Samsung Electronics and SK Hynix suffered steep losses during a volatile stretch in the local equity market, according to data cited by Odaily. Figures released on July 15 by FnGuide Quantwise and Mirae Asset Securities showed that four leveraged ETFs issued by Mirae Asset Global Investments and Samsung Asset Management recorded combined valuation losses of 8.8337 trillion won from July 1 to July 13. Over the same period, assets under management for those four funds fell from 14.3518 trillion won to 8.9389 trillion won, a drop of 37.7%.
The pressure was not limited to those products. Across all 14 listed single-stock leveraged ETFs in South Korea tracking Samsung Electronics and SK Hynix, assets under management fell 41.4% over the same period, sliding from 15.9349 trillion won at the end of June to 9.3386 trillion won on July 13. Within that group, Samsung Electronics leveraged ETFs saw assets decline 35.3%, while SK Hynix leveraged ETFs dropped 44.9%.
Data from the Korea Capital Market Institute showed that as of June 19, individual investors had made cumulative net purchases of 8.2 trillion won in single-stock leveraged ETFs, accounting for about 60% of the assets under management in the related products. That suggests a large share of the recent losses may have been borne by retail investors.
South Korea's domestic stock market has swung sharply over the past nine trading days, and valuation losses in single-stock leveraged ETFs with heavy retail participation have topped 8.8 trillion won, according to Odaily.
Data released on July 15 by FnGuide Quantwise and Mirae Asset Securities showed that four single-stock leveraged ETFs issued by Mirae Asset Global Investments and Samsung Asset Management, tracking Samsung Electronics and SK Hynix, recorded combined valuation losses of 8.8337 trillion won between July 1 and July 13.
Assets under management fell sharply
During the same period, assets under management for those four ETFs dropped from 14.3518 trillion won to 8.9389 trillion won, a decline of 37.7%.
Across all 14 listed single-stock leveraged ETFs in South Korea that track Samsung Electronics and SK Hynix, assets under management also fell 41.4%, sliding from 15.9349 trillion won at the end of June to 9.3386 trillion won on July 13.
- Samsung Electronics leveraged ETFs recorded a 35.3% drop in assets
- SK Hynix leveraged ETFs recorded a 44.9% drop in assets
Retail investors may bear much of the losses
Data from the Korea Capital Market Institute showed that, as of June 19, individual investors had posted cumulative net purchases of 8.2 trillion won in single-stock leveraged ETFs, accounting for about 60% of the assets under management of the related funds. That indicates a large share of the recent losses may have been concentrated among retail investors.
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