ProShares, Leverage Shares Plan Six Leveraged SK Hynix ETF Products for U.S. Launch Next Week

SK Hynix-0.27%
Multiple issuers including ProShares, Leverage Shares, and Rex Shares are preparing to launch at least six two-times leveraged products tracking SK Hynix American Depositary Receipts, with several products slated to debut next week following the company's U.S. listing on July 10. Some issuers are also preparing inverse products. John Cho, portfolio manager at JPMorgan Asset Management's Korea equity fund, cautioned that "retail activity increasingly appears momentum-driven, and the growth of single-stock ETFs has amplified trading volume and volatility of large-cap stocks. The emergence of leveraged ETFs is not a healthy signal and may indicate late-cycle retail behavior." Analysts warn that daily rebalancing flows from the new U.S. leveraged ETPs could further amplify already elevated volatility levels.
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