Report: Samsung Electronics and SK Hynix Leveraged ETFs Face Reality Check

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BlockBeats News, June 24 — A report published by derivatives and quantitative strategist Gordents Schneider on Smartkarma stated that for the 2x leveraged exchange-traded funds (ETFs) tracking Samsung Electronics and SK Hynix to rebound back to the level of June 22, they would need to rise by about 33%, which implies their stocks would need to rebound by approximately 16.5%.

The report said that on Tuesday, the share prices of both Samsung Electronics and SK Hynix fell by double digits, causing the prices of related ETFs to drop by nearly 25%. Among them, Samsung’s 2x leveraged ETF has already fallen by 5.4% since its launch on May 27. He said that the newly launched single-stock 2x leveraged ETFs in Korea can enhance returns in trending markets, but when market volatility is high, they will rapidly erode value, so they are most suitable for short-term tactical momentum investing.

SAMSUNG9.03%
SKHYNIX-12.47%
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