Leveraged ETFs tied to Samsung Electronics and SK Hynix recorded nearly $1 billion in net outflows in August as enthusiasm for the artificial intelligence trade cooled and regulators moved to curb demand. ETFs linked to Samsung Electronics saw $381 million in outflows, while products tracking SK Hynix posted $601 million in outflows.
It is the first monthly net outflow for these products since they launched at the end of May. The ETFs are designed to deliver twice the daily move of the underlying chip stocks and have been seen as amplifying broader market volatility. South Korea's benchmark index suffered a record 22% drop in July after a global selloff in AI stocks, and regulators later raised minimum entry requirements for new investors and required five days of simulated trading.
South Korea’s Chip-Linked Leveraged ETFs See Nearly $1 Billion in August Outflows
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