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

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Mars Finance News, June 24: A report published on Smartkarma by derivatives and quantitative strategist Gordents Schneider said that for the 2x leveraged exchange-traded fund (ETF) tracking Samsung Electronics and SK Hynix to rebound to the level of June 22, it would need to rise by about 33%, which means the stocks would need to rebound by about 16.5%. The report noted that on Tuesday, both Samsung Electronics and SK Hynix shares fell by double digits, causing the related ETF prices to drop by nearly 25%; Samsung’s 2x leveraged ETF has already declined 5.4% since its launch on May 27. He said that the newly launched single-stock 2x leveraged ETF in Korea can enhance returns in a trend market, but when market volatility is stronger it can quickly erode value, making it most suitable for short-term tactical momentum investing.
SAMSUNG9.03%
SKHYNIX-12.47%
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