The SK Hynix 2x Long ETF has dropped about 70% from its peak.
According to Odaily, South Korean retail investors making AI-leveraged bets have suffered significant losses following a sharp market reversal, exposing the risks brought by a surge in speculative trading. Losses have been particularly severe for investors holding single-stock leveraged ETFs linked to Samsung Electronics and SK hynix. According to data from KB Financial Group, since the launch of single-stock leveraged ETFs on May 27, South Korean retail investors have made net purchases totaling 14 trillion won (approximately $9.4 billion), while foreign investors purchased around 2 trillion won. Currently, the outlook for these investors is unfavorable. LSEG data shows that the KODEX SK hynix Leveraged ETF, which offers 2x long exposure to SK hynix shares, has fallen about 70% from the peak reached in June, accumulating a drop of about 50% since its launch.
One investor wrote on a South Korean online trading forum: "I wish I could go back to before I started investing in stocks. Give me my money back."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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