Trading Surges in Samsung Electronics and SK hynix Leveraged Products on Fourth Day After Launch

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[Financial News] In the four days since Samsung Electronics and SK hynix single-stock leveraged products were listed simultaneously on the 27th of last month, 36.93 trillion won changed hands. Money flowed especially heavily into products betting on SK hynix, with trading nearly twice as large as products tracking Samsung Electronics. According to the Korea Exchange (KRX) on the 2nd, the 16 products launched on the 27th recorded a combined trading value of 36.9316 trillion won over the first four days after listing, from May 27 to June 1. Their market capitalization as of the 1st stood at 6.5305 trillion won.
On the first day of listing, 1.0418 trillion won was traded. That was followed by 963.8 billion won on the second day and 781.5 billion won on the third day. Another 906.06 billion won changed hands the previous day.
Over the four-day period, trading rushed into eight products based on SK hynix as the underlying asset. The combined trading value of the eight ETFs reached 23.928 trillion won, nearly double the 12.9399 trillion won recorded for the eight Samsung Electronics-based ETFs.
Among these products, the most actively traded was the KODEX SK Hynix Single Stock Leverage ETF, which saw 13.7315 trillion won in trading during the period.
There are several interpretations of why funds have concentrated in SK hynix-based products since the launch of single-stock leveraged products. Most of SK hynix's revenue comes from memory semiconductors, while Samsung Electronics also operates broadly in smartphones and home appliances. As a result, some say investors who are aggressively buying semiconductor stocks have flocked to the SK hynix single-stock products.
In fact, on the 1st, Samsung Electronics rose 10.09% and SK hynix gained 1.29% at the close. Yet the most heavily traded of the 16 single-stock leveraged ETFs that day was the KODEX SK Hynix Single Stock Leverage ETF, with 280.57 billion won in trading. It rose 4.03% on the day.
By contrast, the KODEX Samsung Electronics Single-Stock Leveraged ETF, which rose 20.71% that same day, recorded 237.16 billion won in trading.
Individual investors appear to be approaching these products as short-term trades. From the 27th to the 29th of last month, retail investors bought 921.46 billion won worth of the 16 single-stock leveraged products and sold 515.41 billion won worth. In just three days, they sold off more than half of what they had bought.
Since the listing, Samsung Electronics single-stock leveraged products have posted standout returns through the previous day. Among the 16 products, the top performer was the 1Q Samsung Electronics Single-Stock Leveraged ETF, which rose 37.19%.
SK hynix-tracking leveraged products such as the RISE SK hynix Single-Stock Leverage ETF (33.35%) and the ACE SK hynix Single-Stock Leverage ETF (33.26%) also posted returns in the 32% to 33% range.
On the other hand, the PLUS Samsung Electronics Futures Single-Stock Inverse 2X ETF, which moves twice in the opposite direction of the daily returns of Samsung Electronics and SK hynix, posted a return of -34% over the same period. The SOL SK hynix Futures Single Stock Inverse 2X ETF fell 28.19%.
nodelay@fnnews.com Park Ji-yeon Reporter