South Korea's Stock Leveraged ETF Sees Ninth Straight Day of Losses, Exceeding 8.8 Trillion Korean Won

BlockBeats News, July 16th. Over the past nine trading days, the domestic stock market in South Korea has experienced sharp fluctuations. The valuation loss of leveraged ETFs, which are mainly held by retail investors, has exceeded a total of 88.37 trillion Korean won.

According to data released by FnGuide Quantwise and Mirae Asset Securities on the 15th, the cumulative valuation loss of four individual stock leveraged ETFs, issued by Mirae Asset Global Investments and Samsung Asset Management to track Samsung Electronics and SK Hynix, from July 1st to the 13th, reached 88.337 trillion Korean won.

During the same period, the AUM of these ETFs decreased from 14.3518 trillion Korean won to 8.9389 trillion Korean won, a 37.7% shrinkage. The total AUM of all 14 leveraged ETFs listed in South Korea, tracking Samsung Electronics and SK Hynix, also decreased by 41.4% during the same period, dropping from 15.9349 trillion Korean won at the end of June to 9.3386 trillion Korean won as of the 13th of this month, with the Samsung Electronics leveraged ETF shrinking by 35.3% and the SK Hynix leveraged ETF shrinking by 44.9%.

According to data from the Korea Capital Market Institute, as of June 19th, individual investors' cumulative net purchases of single-stock leveraged ETFs reached 82 trillion Korean won, accounting for approximately 60% of the AUM of the relevant ETFs. This indicates that a significant portion of the recent losses may be borne by individual investors.