Single-stock leveraged ETFs 14out of 13fell below their listing prices
8Samsung Electronics and SK hynix fell sharply together, sending most single-stock leveraged ETFs below their listing prices. Investors should immediately check changes in the prices and net asset values of the ETFs they hold.
8As Samsung Electronics and SK hynix declined together, most single-stock leveraged ETFs based on these stocks fell below their listing prices, exposing investors to the risk of losing their principal.
According to the Korea Exchange, 14of the single-stock leveraged ETFs, 13fell below their listing prices based on closing prices.
There were many cases in which they fell below the listing price of 2ten-thousand won, while, exceptionally, KODEX SK hynix Single Stock Leverage maintained its listing price for only one product.
The underlying stocks saw steep declines. Samsung Electronics fell the previous day by 6.92% and SK hynix fell on the same day by 6.06%.
Leveraged ETFs tracking these stocks at twice the rate amplified movements in the underlying assets and recorded sharp declines in the 12~13% range.
Specific examples can also be confirmed. KODEX Samsung Electronics Single-Stock Leverage fell by 13.71%, while TIGER Samsung Electronics Single-Stock Leverage fell by 13.88%.
KODEX SK hynix Single-Stock Leverage fell by 12.56%, while the net assets of single-stock leveraged ETFs declined by nearly 3trillion won from their peak.
Within just over a month of listing, most of these products were trading below their listing prices.
Sources: 파이낸셜뉴스 증권
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