This week, the Korean stock market, which has performed well globally but has fluctuated sharply, is about to welcome the first batch of individual leveraged exchange-traded funds. This type of financial instrument will simultaneously amplify investment income and loss. The leveraged fund launched this time targets two chip stocks, Samsung Electronics and SK Hynix. The product goal is to achieve income fluctuations of two times the rise and fall of individual stocks in a single day. Both companies are core companies in the global artificial intelligence industry chain. Analysts expect that more than 14 million retail investors in South Korea will have strong demand for such ETFs. However, the current 5% daily fluctuation of the Korea Composite Stock Price Index is becoming more frequent, and market fervor may further exacerbate fluctuations. Jung In Yun, CEO of Fibonacci Global Asset Management in Singapore, said, “This type of fund will exacerbate the existing risk of individual stock concentration. Stock index volatility will continue to be high, causing operational problems for long-term investors and a structural hazard for the Korean market.”

This week, the Korean stock market, which has performed well globally but has fluctuated sharply, is about to welcome the first batch of individual leveraged exchange-traded funds. This type of financial instrument will simultaneously amplify investment income and loss. The leveraged fund launched this time targets two chip stocks, Samsung Electronics and SK Hynix. The product goal is to achieve income fluctuations of two times the rise and fall of individual stocks in a single day. Both companies are core companies in the global artificial intelligence industry chain. Analysts expect that more than 14 million retail investors in South Korea will have strong demand for such ETFs. However, the current 5% daily fluctuation of the Korea Composite Stock Price Index is becoming more frequent, and market fervor may further exacerbate fluctuations. Jung In Yun, CEO of Fibonacci Global Asset Management in Singapore, said, “This type of fund will exacerbate the existing risk of individual stock concentration. Stock index volatility will continue to be high, causing operational problems for long-term investors and a structural hazard for the Korean market.”