Assets in single-stock ETFs tied to Samsung and SK Hynix cut in half

South Korea’s experiment with single-stock leveraged ETFs has gone about as well as handing a toddler a flamethrower. Products tracking Samsung Electronics and SK Hynix, the country’s two semiconductor titans, have seen their assets under management collapse by roughly 50% from peak levels, leaving a trail of retail losses and regulatory scrambling in their wake. The funds, which launched on May 27 on the Korea Exchange, attracted an astonishing 14 to 15 trillion won (around $9.4 to $10.4 billion) in net inflows from retail investors in the weeks following debut. From moon to crater in sixty days Sixteen single-stock ETFs, primarily offering 2x daily leveraged exposure to Samsung and SK Hynix, hit the market and immediately drew a tidal wave of retail money. Combined AUM peaked at roughly 17 trillion won, approximately $11 to $12 billion. The largest product, the KODEX SK Hynix Single Stock Leverage fund, peaked at around $3.4 billion in AUM before tumbling approximately 45% from its debut price. Multiple products across the lineup fell even harder, with share prices dropping from around 20,000 won at listing to below 10,000 won by late July. The culprit was straightforward: the un...