Svmuu News: South Korea’s domestic stock market has experienced sharp volatility over the past nine trading days, with leveraged ETFs—which have a high proportion of retail investors—suffering cumulative valuation losses exceeding 8.8 trillion won. According to data released on the 15th by FnGuide Quantwise and Mirae Asset Securities, four single-stock leveraged ETFs—issued by Mirae Asset Global Investments and Samsung Asset Management and tracking Samsung Electronics and SK Hynix— suffered cumulative valuation losses of 8.8337 trillion won between July 1 and 13.
During the same period, the assets under management (AUM) for these ETFs fell from 14.3518 trillion won to 8.9389 trillion won, a 37.7% decline. The total assets under management (AUM) of all 14 single-stock leveraged ETFs listed in South Korea that track Samsung Electronics and SK Hynix also fell by 41.4% during the same period, falling from 15.9349 trillion won at the end of June to 9.3386 trillion won on the 13th of this month. Among these, the AUM of Samsung Electronics leveraged ETFs decreased by 35.3%, while that of SK Hynix leveraged ETFs decreased by 44.9%.
According to data from the Korea Capital Market Institute, as of June 19, retail investors had accumulated net purchases of single-stock leveraged ETFs totaling 8.2 trillion won, accounting for approximately 60% of the AUM of these ETFs. This suggests that a significant portion of the recent losses may have been borne by retail investors. (Jin Shi)