Samsung and SK Hynix Leveraged ETFs Drive 212 Trillion Won in June Trading, Amplify Market Volatility

According to Korea Exchange, single-stock leveraged ETFs for Samsung Electronics and SK Hynix saw combined trading volume of 212 trillion won in June, representing 26.6% of total ETF trading. The SK Hynix 2x leverage ETF led with 84.3 trillion won in trading volume, while Samsung's equivalent products generated 47.9 trillion won.

Despite high trading activity, returns lagged expectations; SK Hynix leveraged ETF achieved a maximum gain of 17.04% since its May 27 listing, while Samsung's products recorded negative returns amid U.S. semiconductor sector weakness. Analysts noted that rebalancing trades by leveraged funds, which buy on rallies and sell on declines to maintain target multiples, intensify market volatility. The KOSPI 200 volatility index (VKOSPI) surged to 81 post-launch from a pre-launch average of 53, according to Shinhan Investment Securities.