Korean equity leveraged ETFs’ nine-day floating loss expands by more than 88k won

BlockBeats message, on July 16, South Korea’s domestic stock market saw intense volatility over the past nine trading days, and the valuation losses accumulated for leveraged ETFs in individual stocks with a high proportion of retail investors have exceeded 8.8 trillion won.

Based on data released on the 15th by FnGuide Quantwise and Mirae Asset Securities, for 4 single-stock leveraged ETFs issued by Mirae Asset Global Investments and Samsung Asset Management and tracking Samsung Electronics and SK hynix, valuation losses accumulated from July 1 to July 13 reached 8.8337 trillion won.

Meanwhile, during the same period, the assets under management of these ETFs fell from 14.3518 trillion won to 8.9389 trillion won, down 37.7%. The total assets under management of all 14 listed leveraged ETFs tracking Samsung Electronics and SK hynix on the Korean market also decreased by 41.4% over the same period, from 15.9349 trillion won at the end of June to 9.3386 trillion won on the 13th of this month. Among them, the leveraged ETF assets for Samsung Electronics decreased by 35.3%, and those for SK hynix decreased by 44.9%.

Data from the Korea Capital Market Research Institute shows that as of June 19, individual investors had cumulatively net-bought single-stock leveraged ETFs totaling 8.2 trillion won, accounting for about 60% of the related ETFs’ assets under management. This suggests that a large portion of the recent losses may be borne by individual investors.