Single-stock leveraged and inverse ETFs tied to Samsung Electronics and SK Hynix recorded 10.2 trillion won in trading volume on May 24, with two SK Hynix products accounting for 64.7% of the total, according to financial data provider Yonhap Infomax. The concentration occurred as the government decided to accelerate its basic deposit requirement strengthening measure for single-stock leveraged products by three days. The 16 ETF products represented 40% of the total ETF trading volume of 26.2 trillion won on May 24, down slightly from 10.5 trillion won recorded on May 22.
SK Hynix ETFs Account for 6.8 Trillion Won in Trading Volume
Trading volume concentrated heavily in two SK Hynix products on May 24. SOL SK Hynix Futures Single-Stock Inverse 2X recorded 3.63 trillion won in trading volume, while KODEX SK Hynix Single-Stock Leverage recorded 3.17 trillion won. The combined 6.8 trillion won from these two products represented 64.7% of the total trading volume across all 16 single-stock leveraged and inverse ETFs. These two products ranked first and second in overall ETF trading volume for the day. TIGER SK Hynix Single-Stock Leverage recorded 1.38 trillion won in trading volume, and KODEX Samsung Electronics Single-Stock Leverage reached 1.06 trillion won.
Individual Investors Net Purchase Leveraged Products Despite Sharp Declines
Individual investors net purchased 251.4 billion won of KODEX SK Hynix Leverage on May 24, making it the top individual net purchase among all ETFs despite the product declining 13-16%. Individual investors also net purchased 84.4 billion won of TIGER SK Hynix Leverage, 77.9 billion won of KODEX Samsung Electronics Leverage, and 21.1 billion won of TIGER Samsung Electronics Leverage. In contrast, individual investors net sold 90.7 billion won of SOL SK Hynix Futures Inverse 2X, which rose 16.06% on the day, making it the top individual net sale among all ETFs. Individual investors also net sold 16.4 billion won of PLUS Samsung Electronics Futures Inverse 2X.
Samsung Electronics and SK Hynix Stocks Fall Over 7%
SOL SK Hynix Futures Single-Stock Inverse 2X and PLUS Samsung Electronics Futures Single-Stock Inverse 2X closed up 16.06% and 15.25% respectively on May 24, while the other 14 leveraged products closed down 13-16%. The movements reflected underlying stock performance, as Samsung Electronics and SK Hynix fell 7.59% and 8.34% respectively in regular trading.
FAQ
What was the total trading volume for single-stock leveraged and inverse ETFs on May 24?
The total trading volume for the 16 single-stock leveraged and inverse ETFs tied to Samsung Electronics and SK Hynix reached 10.2 trillion won on May 24, according to Yonhap Infomax. This represented 40% of the total ETF trading volume of 26.2 trillion won on that day.
Which SK Hynix ETF products dominated trading volume on May 24?
SOL SK Hynix Futures Single-Stock Inverse 2X recorded 3.63 trillion won in trading volume, and KODEX SK Hynix Single-Stock Leverage recorded 3.17 trillion won. Combined, these two products accounted for 6.8 trillion won, or 64.7% of the total trading volume across all 16 single-stock leveraged and inverse ETFs.
How did individual investors respond to the sharp declines in leveraged products?
Individual investors net purchased 251.4 billion won of KODEX SK Hynix Leverage despite the product declining 13-16% on May 24. They also net purchased other leveraged products including TIGER SK Hynix Leverage (84.4 billion won) and KODEX Samsung Electronics Leverage (77.9 billion won). In contrast, they net sold 90.7 billion won of SOL SK Hynix Futures Inverse 2X, which rose 16.06%.
