The value of a new leveraged product that tracks major Korean chip stocks has plummeted, putting retail investors in South Korea who prefer to use these tools to amplify their earnings at serious risk of loss. According to the data, the prices of more than a dozen leveraged exchange-traded funds tracking Samsung Electronics and SK Hynix have fallen by nearly half since they went public in late May. Among them, the largest product, SAMSUNG KODEX SK Hynix Single Stock Leverage, has an asset management scale of about US$3.4 billion. Since its launch, it has fallen by about 45%, down more than 60% from its June high. The decline in these products highlights the risk of leveraged investments in the two South Korean chip giants. Although these products may bring in excess returns, they may also increase market volatility, as issuers usually need to buy and sell on dips to keep the fund's leverage ratio in line with their promises.

The value of a new leveraged product that tracks major Korean chip stocks has plummeted, putting retail investors in South Korea who prefer to use these tools to amplify their earnings at serious risk of loss. According to the data, the prices of more than a dozen leveraged exchange-traded funds tracking Samsung Electronics and SK Hynix have fallen by nearly half since they went public in late May. Among them, the largest product, SAMSUNG KODEX SK Hynix Single Stock Leverage, has an asset management scale of about US$3.4 billion. Since its launch, it has fallen by about 45%, down more than 60% from its June high. The decline in these products highlights the risk of leveraged investments in the two South Korean chip giants. Although these products may bring in excess returns, they may also increase market volatility, as issuers usually need to buy and sell on dips to keep the fund's leverage ratio in line with their promises.