"Samsung Electronics shares rose, but I’m down 10%—was this a product that could double my losses?" Frustrated investors in leveraged ETFs [Salary Worker’s Joys and Sorrows]

[Financial News]"Samsung Electronics shares are up, so why is my ETF in the red?"A salaried worker in his 30s, identified as A, was surprised after checking the returns on a leveraged product tied to Samsung Electronics. Samsung Electronics shares appeared to have edged up since listing, but the 2x product he bought was in the loss zone.
A said, "I thought if the underlying stock went up, the 2x product would rise even more," adding, "I had no idea the returns could look so different as the stock moved up and down."
Confusion is growing among retail investors over single-stock leveraged products based on Samsung Electronics and SK hynix. Many expected stronger gains in a rising market, but some investors are now feeling losses first as sharp declines and rebounds continue to alternate. The number "2x" may look attractive, but these products are structurally different from simply holding the underlying stock over the long term.

Single-stock leveraged products are designed to track twice the daily price movement of a specific stock. If Samsung Electronics or SK hynix rises 3% in a day, the related 2x product is theoretically designed to gain about 6%. On the other hand, if the stock falls 3% in a day, the loss also widens to around 6%.
However, the calculation can change if the product is held for several days or longer. That is because it is rebalanced based on daily returns. If the underlying asset rises and falls repeatedly, the cumulative return will differ from a simple doubling of the underlying stock’s return.
Comparing returns from May 27, when the leveraged products were listed, through the 3rd of this month, Samsung Electronics rose 0.81%, while KODEX Samsung Electronics Single Stock Leverage ETF fell 10.75%. Over the same period, SK hynix gained 8.11%, but KODEX SK Hynix Single Stock Leverage ETF declined 1.35%.
For investors, the result is hard to understand. The underlying stocks rose, yet the 2x products posted losses. But leveraged products do not guarantee twice the underlying stock’s return over a set period. Gains and losses are recalculated based on each day’s movement.
Another salaried worker in his 30s, identified as B, said, "I bought the 2x product because the price of SK hynix itself felt too expensive," adding, "I only thought about making bigger gains. I didn’t really realize that the ETF could fall even if the underlying stock went up."

Leveraged products are easy to sell to investors in a rising market because they offer the chance of larger returns with less money. The fact that Samsung Electronics and SK hynix are familiar names to domestic investors also lowered the barrier to entry.
But familiarity does not make the product less risky. Single-stock leveraged products are not structured like index ETFs that spread investments across multiple companies. Prices can swing sharply based on one company’s earnings outlook, the semiconductor cycle, foreign investor flows, and global tech stock trends.
In a market like the current one, where major semiconductor stocks keep plunging and rebounding, losses can widen even faster. When the stock falls sharply in a day, the leveraged product drops even more. Even if the underlying stock later rebounds, a much larger gain is needed to recover earlier losses.
For example, if a product worth 1 million won falls 20%, its value drops to 800,000 won. To return to the original principal, it would need to rise 25%, not 20%. The larger the loss, the higher the rebound needed for recovery.
A said, "At first I planned to hold it for just a day or two, but once I was in the red, I couldn’t bring myself to sell." He added, "I think the underlying stock will eventually rise, but I’m not sure whether I can treat the leveraged product the same way."

The financial authorities also warned about the risks before launch. On May 26, the Financial Services Commission (FSC) and the Financial Supervisory Service explained key precautions for investing in single-stock leveraged products, noting that they concentrate on a specific stock and magnify gains and losses.
According to the financial authorities, single-stock leveraged products were listed on May 27, 2026. Eight asset managers launched 16 ETF products, while one securities firm introduced two ETN products. The underlying assets are Samsung Electronics and SK hynix.
New investors must complete one hour of basic education and one hour of advanced education, and they must also maintain a minimum deposit of 10 million won. But even after taking the training, investors may still not fully grasp tracking error, the negative compounding effect, or the risks of concentrated exposure to a single stock.
The financial authorities said that, given Korea’s 30% daily price limit up and down, a 2x leveraged product could theoretically lose as much as 60% in a single day. They also gave an example in which a 30% rise in the underlying asset followed by a 30% drop would leave a regular product with a 9% loss, while the 2x leveraged product would suffer a 36% loss.
In the end, even if the product carries the ETF label, its structure is different from ordinary stocks or diversified ETFs. Single-stock leveraged products are high-risk instruments whose returns are heavily driven by the short-term direction of a specific stock. Before buying, investors should check not only the outlook for the underlying stock, but also the holding period, loss limits, tracking error, and the negative compounding effect.
B recently sold part of his leveraged holdings. He complained, "I only saw the part about making twice as much, but what I learned first was that I could also lose twice as much." He added, "Thinking positively about Samsung Electronics or SK hynix is one thing, but buying a 2x product is a different matter."
hsg@fnnews.com Han Seung-gon Reporter