"Short-term traders piled in" ... leverage products tied to Samsung Electronics and SK hynix top 28 trillion won in trading value in three days

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[Financial News] The trading value of 16 single-stock leverage products based on Samsung Electronics and SK hynix reached 28 trillion won just three days after their launch. The number of investors preparing to trade these products also climbed above 300,000.
According to the Korea Exchange (KRX) and other sources on the 31st, the combined trading value of the 16 single-stock leverage products, which track the daily returns of Samsung Electronics and SK hynix at twice the rate in either direction, came to 27.871 trillion won from the 27th, when they were launched, through the 29th.
By product, Samsung KODEX SK Hynix Single Stock Leverage ETF ranked first in the entire exchange-traded fund (ETF) market with 10.9258 trillion won in trading value. MiraeAsset TIGER SK Hynix Single Stock Leverage ETF and Samsung Electronics Single-Stock Leveraged ETF ranked fourth and fifth, respectively.
The total market capitalization of the 16 newly launched products stood at 5.3312 trillion won, while their net asset value reached 5.0266 trillion won. Both figures exceeded the 5 trillion won mark.
As SK hynix shares rose 13.69% over the past three days, the single-stock leverage products tracking the stock also posted returns in the 26% to 28% range.
As investor enthusiasm for single-stock leverage products intensifies, the number of people completing the mandatory pre-investment education required for trading is also rising sharply.
According to the status of mandatory pre-investment education overseen by the Korea Financial Investment Association (KOFIA), the number of completers jumped by more than 100,000 in just six days, from 93,118 on the 21st to 193,843 on the 26th, the day before the products were launched. As of the 28th, the figure had risen again by more than 100,000 in two days to 305,197.
Individual investors bought 921.46 billion won worth of the 16 single-stock leverage products over three days, while selling 515.41 billion won worth. That suggests they sold back nearly half of their total purchases.
Given that financial authorities recommend these products for short-term investment purposes, short-term trading, or "day trading," appears to account for a large share of activity. The asset management industry has also found that the average holding period for leveraged ETFs is only about four to five days.
hsg@fnnews.com Han Seung-gon Reporter