Samsung and SK Hynix Leveraged ETFs Post First Outflow Since May Launch

Leveraged exchange-traded funds (ETFs) tied to South Korea's two biggest chipmakers shed close to $1 billion in August.

The withdrawals mark the first monthly outflow since the products launched in late May. The reversal comes as enthusiasm around the AI trade has weakened and regulators have introduced measures aimed at curbing speculative demand.

Leveraged Chip ETFs in South Korea Snap Inflow Run

Data compiled by Bloomberg Intelligence shows $601 million left the funds tracking SK Hynix, while Samsung-linked products lost $381 million. The ETFs aim to deliver twice the daily move of the underlying stock.

The reversal follows a brutal July for Korean equities. The KOSPI sank 22% that month. Samsung Electronics fell 21.5% over the same period.

SK Hynix dropped 35.5%, deepening losses for retail traders who had piled into double-leveraged wrappers.

Officials called an emergency meeting after 864.5 trillion won left the market across two sessions. Lawmakers blamed single-stock leveraged ETFs for amplifying the slide.

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