Multiple SK Hynix ADR Leveraged Products to Launch on Wall Street

A wave of leveraged exchange-traded funds (ETFs) linked to SK Hynix American Depositary Receipts (ADRs) is expected to hit Wall Street.
Bloomberg reported on July 10 that firms including ProShares, Leverage Shares, and Rex Shares are preparing to launch leveraged products based on SK Hynix ADRs, with some companies also readying inverse products.
According to the companies' websites, at least six or more products are scheduled to be released next week.
Previously, the single-stock leveraged ETF for SK Hynix by Hong Kong-based asset manager CSOP had grown into the world's largest of its kind, managing over $16 billion in assets before the recent decline in share price.
As single-stock leveraged (including inverse) products for Samsung Electronics and SK Hynix have been pointed to as one of the causes of extreme stock price volatility in the Korean market, similar phenomena could emerge in the U.S. stock market.
John Cho, a portfolio manager for Korean equities at J.P. Morgan Asset Management, said, "Some of the retail investors' activities are increasingly showing a momentum-driven trend, and the growth of single-stock ETFs is fueling trading volume and volatility in large-cap stocks."
He added, "The emergence of leveraged ETFs is not considered a healthy sign. It might be a signal of the late stage of an upward cycle."
※ Please note: This article was translated by AI and may contain errors.