▲ The KOSPI and other market indicators are displayed on the electronic board at the dealing room of the Hana Bank headquarters in Seoul on the 28th.
As single-stock leverage exchange-traded funds (ETFs)—totaling 14 products—plummeted today (the 28th), their share prices ultimately crashed to less than half of their listing prices.
According to the Korea Exchange and financial information provider Yonhap Infomax, share prices of leverage ETFs tracking SK Hynix and Samsung Electronics as single underlying assets plunged by around 28% and 26%, respectively.
KODEX SK Hynix Single Stock Leverage, which has the largest net assets, closed down 28.43% at 9,930 won, while TIGER's equivalent product also dropped 28.92% to close at 8,345 won.
Setting record lows since their listing on a closing price basis, the two products fell as low as 9,860 won and 8,300 won during the session.
Samsung Electronics single-stock leverage ETFs from KODEX and TIGER also finished lower by 26.90% and 26.67%, ending at 9,415 won and 8,660 won, respectively.
Today's sharp decline was driven by steep drops in the main shares of SK Hynix and Samsung Electronics on the Korea Composite Stock Price Index (KOSPI) market, which plummeted 14.65% and 13.39%, respectively.
Due to today's plunge, the share prices of these 14 single-stock leverage products fell to less than half of their listing prices in just two months.
In the case of KODEX SK Hynix Single Stock Leverage, its listing price was 23,450 won, but having closed at 9,930 won today, its decline rate reached 57.65%.
The decline rate for TIGER's corresponding product (closing price 8,660 won) stood at 58.24% compared to its listing price (19,985 won), while the Samsung Electronics leverage products from both brands also crashed by 56.48% and 56.65% from their listing prices.
This happened in just two months.
Considering that KODEX and TIGER SK Hynix Single Stock Leverage once soared up to 44,385 won and 37,775 won after listing, their share prices today are below one-fourth of their peak levels.
SOL SK Hynix Futures Single Stock Inverse 2X, which aims for returns twice the inverse of SK Hynix's share price decline, rose 29.10% today to close at 14,530 won.
However, its decline rate compared to the listing price of 20,005 won stood at 27.37%.
Among the 16 products, only PLUS Samsung Electronics Futures Single Stock Inverse 2X finished up 26.86% at 21,160 won today, posting a gain compared to its listing price (20,000 won).
Despite such a sharp drop, retail investors continued their net purchases today, buying up 419.9 billion won and 152.3 billion won worth of KODEX and TIGER SK Hynix Single Stock Leverage, respectively.
Over the past two months up to today, retail net purchases for the 14 leverage products—excluding the 2 inverse products—reached 14.7059 trillion won.
Retail buying sprees showed no signs of cooling down as KODEX SK Hynix Single Stock Leverage ranked first in retail net purchases among all ETFs today, while TIGER placed fifth.
Trading value for the 16 leverage products, including inverse funds, which had dropped to the 7-trillion-won range the previous day, recorded 8.2864 trillion won today, increasing from the previous day (7.4464 trillion won).
However, the proportion of trading value for these 16 products relative to total ETF trading value fell from 36.7% the previous day to 34.2% today.
(Photo: Yonhap News)
※
Copying, redistribution, and unauthorized use in AI training are strictly prohibited.