South Korean Leverage ETF Scale Reaches Historic High of Approximately $45 Billion

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On July 3, The Kobeissi Letter reported that the leverage levels in the South Korean stock market are at an extreme state. The assets under management of South Korean leverage ETFs have reached a historic high of approximately $45 billion, growing by about 800% since early 2026. It noted that the leverage exposure as a percentage of free float market capitalization has risen to about 2.9%, more than tripling since January levels. Free float market capitalization refers to the portion of stocks available for public trading. Meanwhile, the assets of the 2x long SK Hynix ETF listed in Hong Kong once surged to approximately $15 billion, making it the largest single-stock leverage product globally. In contrast, the four major 2x long ETFs tracking Micron (MU), Nvidia (NVDA), SanDisk (SNDK), and Tesla (TSLA) have never exceeded $10 billion in assets.
SK Hynix-0.27%
MU-1.19%
NVDA4.06%
SNDK3.10%
TSLA0.29%
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