SK Hynix's record U.S. listing has spawned a new wave of U.S.-listed leveraged
products tied to the stock. Issuers including ProShares, Leverage Shares and Rex
Shares are preparing 2x long SK Hynix ADR ETPs and some inverse variants; issuer
sites show at least six products slated to launch next week. Single-stock
leveraged ETFs are already extremely popular in Korea: SK Hynix, Samsung
Electronics and linked leveraged products account for more than 70% of Korean
market trading volume, increasing KOSPI volatility. John Cho, Korea equity fund
manager at J.P. Morgan Asset Management, said retail activity appears
increasingly momentum-driven and single-stock ETFs have amplified large-cap
trading and volatility, warning the emergence of leveraged ETFs can signal
late-cycle retail behavior. Analysts add concentrated single-stock leverage is
starting to affect the underlying names; new U.S.-listed leveraged ETPs will
expand daily rebalancing flows and could further amplify already elevated
volatility.
