Korea to Launch First Single-Stock Leveraged and Inverse ETFs in May

Starting May 22, Korea will introduce its first-ever single-stock leveraged ETFs, tracking Samsung Electronics and SK Hynix at a 2x multiple. These products offer investors the potential for double the returns compared to the underlying stock's performance, but they equally double losses during declines, presenting a substantially higher risk profile. To address these risks, the government has mandated investor training and deposit requirements as part of strengthened investor protection, aiming to provide domestic investors with opportunities comparable to the global ETF market.
Asset management firms Hanwha and Shinhan are preparing 2x leveraged and -2x inverse ETFs for Samsung Electronics and SK Hynix, respectively. The Financial Services Commission's recent amendment to the Capital Markets Act now permits leveraging and inverse ETFs and ETNs based on single stocks, though only select blue-chip domestic stocks will be eligible. The introduction of these innovative products is expected to invigorate the local equity market and cater to a wider range of investment strategies and demand.
Related News
Reverse Betting Amid Bull Market... 'Double Short' ETF for Samsung and SK Hynix Also Launching - Yonhap InfomaxFrom next month, it will be possible to place double short bets on Samsung Electronics and SK Hynix. Asset management companies are preparing products that allow investment not only with leverage but also with double short on these two stocks. According to the financial investment industry on the 22nd, Hanwha Asset Management is preparing two types of ETFs: one tracking Samsung Electronics' returns at double leverage and another at negative double leverage ('double short'). Shinhan Asset Management also plans to launch leverage and double short ETFs that reflect SK Hynix's stock price movements at double and negative double, respectively. The target is to launch them next month. The so-called 'double short' stands for two times (multiplying) the inverse.
Samsung Electronics and Hynix '2x Bet ETF' to Launch Next Month on 22nd - Chosun IlboSamsung Electronics and Hynix's 2x Bet ETF will launch on the 22nd of next month. The introduction of the first single stock leveraged ETF. Starting as early as the 22nd of next month, investors can purchase an ETF that tracks double the returns of Samsung Electronics and SK Hynix. If the stock price rises, the profit doubles, and if it falls, it doubles downward.
Samsung Electronics-Hynix 'Double ETF' to be Released on the 22nd of Next Month - Dong-A IlboA leveraged and inverse exchange-traded fund (ETF), which tracks twice the profit or loss of individual stocks like Samsung Electronics and SK Hynix, will be introduced as early as May 22. The Financial Services Commission on the 21st allowed the introduction of leveraged ETFs and exchange-traded notes (ETNs) based on single stocks through a capital market law enforcement ordinance...
