Leveraged inverse ETF prices 86plunge to the won range, raising delisting concerns
KOSPI 200futures inverse2X, the so-called leveraged inverse ETF, saw its price 87.15% lower, and some products fell to the 86won range. Amid recently heightened stock-market volatility, trading in products that bet on declines and the possibility of delisting have emerged as simultaneous concerns.
The price of the KOSPI 200futures inverse2X exchange-traded fund (ETF), known as a leveraged inverse ETF, fell sharply. Its decline since the beginning of the year was 87.15%. The prices of some products fell to around the 86won level.
KODEX 200futures inverse2X closed at 5won on the 88The ETF price fell sharply as the KOSPI's upward trend was driven mainly by large semiconductor stocks. Its structure of tracking the underlying index's daily movement in the opposite direction by 2times had an effect.
KIWOOM 200futures inverse2X closed at 86won. RISE 200futures inverse2X finished trading at 91won on the same day. These products have entered the ultra-low-price range.
TIGER 200futures inverse2X stood at 95won, while PLUS 200futures inverse2X stood at 180won. Most major leveraged inverse ETFs remained in the low-price range. The sharp price decline is directly linked to larger investor losses.
As the stock market rose sharply at points this year, losses accumulated among holders of leveraged inverse ETFs. Recently, demand for bets on declines appears to be increasing again as domestic and overseas stock markets have fallen together. Expanding market volatility is affecting trading in leveraged inverse ETFs.
These ETFs track the daily return of the KOSPI200 futures index by -2times. Prices that have fallen to ultra-low levels are directly linked to listing-maintenance criteria and redemption pressure. The possibility of delisting is currently being discussed in the market.
Sources: 파이낸셜뉴스 증권
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