Individual stock leveraged ETFs in South Korea see paper losses expand by over 8.8 trillion won in nine trading days

According to Odaily, South Korea's domestic stock market has experienced extreme volatility over the past nine trading days, with cumulative valuation losses on single-stock leveraged ETFs, which have a high proportion of retail investors, exceeding 8.8 trillion won. Based on data released on the 15th by FnGuide Quantwise and Mirae Asset Securities, four single-stock leveraged ETFs tracking Samsung Electronics and SK Hynix, issued by Mirae Asset Global Investments and Samsung Asset Management, recorded cumulative valuation losses of 8.8337 trillion won between July 1 and July 13.

During the same period, the assets under management (AUM) of these ETFs fell from 14.3518 trillion won to 8.9389 trillion won, a decrease of 37.7%. For all 14 single-stock leveraged ETFs listed in South Korea tracking Samsung Electronics and SK Hynix, the total AUM also dropped by 41.4% during the period, from 15.9349 trillion won at the end of June to 9.3386 trillion won on July 13. Among these, the AUM of leveraged ETFs tracking Samsung Electronics decreased by 35.3%, while those tracking SK Hynix saw a reduction of 44.9%.

Data from the Korea Capital Market Institute shows that as of June 19, individual investors had accumulated net purchases of single-stock leveraged ETFs amounting to 8.2 trillion won, accounting for approximately 60% of the related ETFs' AUM. This indicates that a significant portion of the recent losses is likely concentrated among retail investors. (Source: Jinshi)