Svmuu News: In a report published on Smartkarma, derivatives and quantitative strategist Gordenz Schneider noted that for the 2x leveraged exchange-traded funds (ETFs) tracking Samsung Electronics and SK Hynix to return to their June 22 levels, they would need to rise by about 33%, which implies that the underlying stocks would need to rebound by about 16.5%.
The report noted that on Tuesday, shares of both Samsung Electronics and SK Hynix fell by double digits, causing the prices of the related ETFs to drop by nearly 25%; among them, the Samsung 2x leveraged ETF has fallen 5.4% since its launch on May 27. He noted that South Korea’s newly launched single-stock 2x leveraged ETFs can boost returns in trending markets but can rapidly erode value during periods of high market volatility, making them best suited for short-term tactical momentum investing. (Jin Shi)