"From 10,000 won to 94 won, it crashed"... Retail investors are buying the '2x ETF' again: "If you pick right, it can return 750%" [World of Retail Investors]

Samsung Asset Management will list single-stock leveraged products for Samsung Electronics and SK hynix on the 27th. 26.
/Photo=Newsis \r\n [Financial News]  #1. A salaried worker identified only by the surname Jo, 37, bought a large amount of KODEX 200 Futures Inverse 2X earlier this month after hearing that the KOSPI had broken above 7,000 for the first time ever.The so-called “goberse,” a leveraged inverse product that makes twice the profit when the KOSPI falls, was his target. Friends who invest with him tried to stop him, but he was convinced that "the market has gone up too much.It is time for it to fall now. " He was certain.Jo was not the only one driven by this kind of betting-like mindset. 494 trillion won in just nine days.But on the morning of the 26th, as the KOSPI, which had briefly paused before the holiday, reclaimed the 8,000 level, KODEX 200 Futures Inverse 2X plunged into the 90-won range. #2.Another salaried worker, identified only by the surname Yoon, 40, was preparing to buy Samsung Electronics' 2x leveraged ETF, waiting for its listing on the 27th. Yoon said he became convinced after seeing the KOSPI break 8,000 on the 26th, Samsung Electronics touch 300,000 won, and SK hynix reach 2 million won.He sold part of his existing holdings to raise cash. "The artificial intelligence (AI) semiconductor supercycle is only just beginning.If it is 2x, the profit is also 2x. " That was his thinking.Samsung Asset Management will list single-stock leveraged products for Samsung Electronics and SK hynix on the 27th. 26.Samsung Asset Management will list single-stock leveraged products for Samsung Electronics and SK hynix on the 27th. 26.
Falling below the 100-won mark for the first time since the product was launched, it has effectively collapsed to near-zero value compared with its all-time high of 12,815 won during the March 2020 COVID-19 pandemic crash. Other inverse products were not much different.31% lower at 1,314 won and moved sideways. The so-called “goberse” products, which had drawn retail investors as representative tools for betting on a sharp fall in the domestic stock market, have recently lost momentum amid the strong bull market.That is why analysts say capital is leaving bearish products across the board as the rally centered on AI and semiconductors continues. In the past, during the COVID-19 pandemic or periods of tightening concerns, inverse ETFs were seen as a key defensive tool for retail investors.
But market watchers say the mood has changed as the appetite for chasing gains in a rising market has strengthened. The opposite direction, a 2x rise, is coming As inverse leveraged products hit new lows, products in the opposite direction will hit the market on the 27th.
A total of 16 single-stock leveraged and inverse 2X products tracking the daily price moves of Samsung Electronics and SK hynix will be listed at the same time, and 14 of them are bullish leveraged products. The Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) issued an official investment warning, saying these are "products with very high loss risk due to volatility," but market sentiment has already turned hot.
Samsung Asset Management will list single-stock leveraged products for Samsung Electronics and SK hynix on the 27th. 26.Samsung Asset Management will list single-stock leveraged products for Samsung Electronics and SK hynix on the 27th. 26.
The case of Hong Kong-listed "CSOP SK Hynix Daily 2x Leveraged ETF," which posted a cumulative return of 750% , continues to be widely discussed."You can make a lot and lose a lot".Why regulators issued an investment warning The real reason leveraged products are risky is that they are vulnerable to volatility.
In a rising market, investors can earn twice the return with a small amount of money.But unlike ordinary ETFs, which spread risk across multiple assets, profits depend on the price movement of a single stock, making them highly vulnerable to volatility.They are directly exposed to changes in a company's earnings outlook or industry conditions, and there is also a high risk of concentrated flows, where money pours in and then quickly exits around specific events such as positive news or earnings releases.
Samsung Asset Management will list single-stock leveraged products for Samsung Electronics and SK hynix on the 27th. 26.Samsung Asset Management will list single-stock leveraged products for Samsung Electronics and SK hynix on the 27th. 26.For investors, that means there is a greater chance of buying a product at a higher price when it could have been bought more cheaply.Above all, investors should note that large losses can occur in a short period of time.Because the daily price limit for Korean stocks is ±30%, leveraged products are structured so that losses of up to 60% are theoretically possible.That is why leveraged ETFs are not suitable for long-term investing.
For this reason, the product name omits the term “ETF,” which can create the impression of diversification, and additional safeguards have been introduced, including a separate one-hour advanced education course on top of the existing one-hour pre-investment training, as well as a minimum deposit of more than 10 million won.
I do not want to become someone who keeps saying, “I should have bought it, I should have sold it, I should have held on.
Samsung Asset Management will list single-stock leveraged products for Samsung Electronics and SK hynix on the 27th. 26.Samsung Asset Management will list single-stock leveraged products for Samsung Electronics and SK hynix on the 27th. 26.
bng@fnnews.com Kim Hee-sun Reporter