SK hynix's 'leveraged and inverse' ETFs set to debut in New York

[Financial News] Single-stock leveraged exchange-traded funds (ETFs) based on SK hynix's American Depositary Receipt (ADR) are set to list on the New York Stock Exchange this week. As investor demand for SK hynix grows in the U.S. market, high-risk, high-return products are expanding rapidly. However, some warn that single-stock leveraged ETFs could amplify share-price volatility.
According to the websites of U.S. ETF managers and other sources on the 12th local time, Leverage Shares, GraniteShares, ProShares, and Coe Funds will sequentially launch leveraged and inverse ETFs based on SK hynix ADRs on the 13th and 14th, Eastern Time.
Leverage Shares will list 'SKHX,' a leveraged ETF that tracks twice the daily return of SK hynix ADR, and 'SKHZ,' an inverse ETF that moves in the opposite direction, on the 13th. ProShares will also unveil its 2x leveraged ETF, 'SKHU,' on the same day.
GraniteShares is scheduled to launch 'SKUU,' a 2x leveraged ETF, and 'SKDD,' a 2x inverse ETF, on the 14th. Coe Funds will also introduce a 2x leveraged ETF that day. Direxion has also announced plans to launch the 2x leveraged ETF 'SKHL,' but has not disclosed a specific listing date.
U.S. ETF managers have been rolling out single-stock leveraged ETFs based on major tech names such as NVIDIA, Tesla, Alphabet Inc., and Advanced Micro Devices, Inc. (AMD). Last month, a wave of related leveraged ETFs also listed shortly after SpaceX debuted on Nasdaq.
On its first day of trading on the New York Stock Exchange on the 10th, SK hynix ADR closed at $168.49, up 13.08% from the offering price, drawing strong market attention.
Single-stock leveraged ETFs are designed to use derivatives to track twice the daily return of an individual stock. Unlike the domestic market, U.S. stocks do not have daily price limits, so ETF prices can swing sharply if the underlying asset becomes more volatile.
In South Korea, single-stock leveraged ETFs based on Samsung Electronics and SK hynix have long faced criticism for increasing share-price volatility. With a flood of similar products now being launched in the U.S., there are also concerns that SK hynix ADR volatility could widen further if short-term trading demand rises.

km@fnnews.com Kim Kyung-min Reporter