A massive number of exchange-traded funds (ETFs) reportedly exceeded their standard disparity rates on July 31, when the KOSPI posted a record-breaking surge.

As of 9:30 AM today (August 3), 195 ETFs have disclosed that they exceeded the disparity rate limit based on the closing prices of July 31.

This accounts for 16.8% of the 1,155 total ETFs.

The disparity rate refers to the percentage difference between an ETF's market price and its net asset value (NAV).

Three ETFs announced that they fell short of the correlation coefficient criteria.

The ETFs that breached the disparity rate limits on that day included eight single-stock leveraged and inverse ETFs based on Samsung Electronics and SK Hynix.

This accounts for half of the total 16 such products.

The single-stock leveraged products that exceeded the disparity rate included five SK Hynix leveraged ETFs, two Samsung Electronics leveraged ETFs, and one inverse ETF.

On July 31, the KOSPI closed with an all-time high surge of 17.81%.

Unlike correlation coefficients (underlying index and replication rates), disparity rates do not trigger delisting requirements even if they persist for a certain period. However, investors must exercise caution as ETF prices deviate from their actual value (NAV).

(Photo: Yonhap News)