Several U.S. asset managers are set to launch leveraged and inverse exchange-traded funds linked to SK Hynix American depositary receipts this week after the chipmaker’s shares made a strong New York Stock Exchange debut on July 10.
Leverage Shares, GraniteShares, ProShares and KOGI Funds said they plan to introduce ETFs tied to SK Hynix ADRs on July 13 and July 14, according to announcements posted on their websites on July 12. The launch dates remain subject to change.
Leverage Shares plans to launch a 2x leveraged ETF under the ticker SKHX and an inverse ETF, SKHZ, on July 13. Both products are designed to track the daily performance of SK Hynix ADRs.
ProShares also plans to introduce a 2x leveraged ETF, SKHU, on July 13.
GraniteShares said it expects to launch a 2x leveraged ETF, SKUU, and a 2x inverse ETF, SKDD, on July 14, while KOGI Funds has announced a separate 2x leveraged SK Hynix ETF for the same day.
Direxion has also announced plans for a 2x leveraged ETF, SKHL, though it hasn’t disclosed a launch date.
Single-stock leveraged ETFs have become increasingly popular in the U.S., where issuers already offer similar products tracking companies including Nvidia, Alphabet, Tesla and Advanced Micro Devices.
The recent listing of SpaceX on Nasdaq also prompted several issuers to introduce leveraged ETFs tied to the company’s shares shortly after trading began
SK Hynix ADRs climbed 13.08% to $168.49 on July 10, marking a strong debut following the company’s U.S. offering.
Single-stock leveraged ETFs use derivatives to seek twice the daily return of an underlying stock, making them significantly more volatile than conventional ETFs. Because leverage is reset each trading day, long-term returns can differ substantially from twice the cumulative performance of the underlying shares.
The products carry additional risk in the U.S. market, where individual stocks are not subject to daily price limits, allowing losses and gains to accelerate during periods of heightened volatility.
Some market participants have expressed concern that the growing availability of leveraged ETFs tied to SK Hynix could amplify volatility in the underlying shares, echoing similar debates in South Korea, where single-stock leveraged ETFs linked to Samsung Electronics and SK Hynix have been criticized for encouraging speculative trading.
