The Korea Times
Leveraged exchange-traded funds (ETF) that allow investors to bet on the direction of a single stock — namely one of Korea’s two memory chip giants, Samsung Electronics and SK hynix — are expected to begin trading next month, according to industry watchers Wednesday. Ahead of the launch, which could come as early as May 22, financial authorities will require investors to complete pre-trading education as part of efforts to strengthen investor protection. Still, experts question how effective such safeguards will be, given the inherently high-risk nature of the products. Some also caution that their introduction could amplify short-term swings in heavyweight stocks, potentially adding to broader market instability. Leveraged ETFs are designed to amplify the daily rise or fall of an underlying asset, typically a market index such as the KOSPI or the S&P 500, often by two or three times. In effect, they let investors wager on the direction of the market. That structure cuts both ways: gains can be magnified, but losses compound just as easily. The new products take that framework a ste
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