Samsung, SK hynix Leveraged ETFs Lose Half Their Value

Samsung Electronics shares fell 4.52% and SK hynix 9.26% from late May to Sept. 23, yet 2x leveraged ETFs on them lost about 35% and nearly 50% due to negative compounding. After regulators raised the deposit requirement to 30 million won on July 31, trading volume in 16 related products dropped 92%.

• KODEX Samsung Electronics Leverage lost about 35% while the stock fell 4.52%
• SK hynix leveraged products plunged nearly 50%; futures-based 1Q and KIWOOM fell over 53%
• Average daily turnover of 16 products fell from 12.25 trillion to 990 billion won after July 31
• Average holding period rose from 2.3 days to 16.9 days