Korea AI Rout Puts $290 Billion Leveraged ETF Boom Under Fresh Scrutiny

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โดย Bloomberg·Read original

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South Korea's AI-fueled selloff has revived scrutiny of the $290 billion leveraged ETF market. The Kospi Index tumbled 10% from a record high on Tuesday, contributing to a global semiconductor selloff, and Korea's top markets regulator expressed regret over allowing single-stock leveraged ETFs. Leveraged ETFs now hold more than $290 billion in assets globally, with Asia's market topping $45 billion and the US surpassing $220 billion, according to Bloomberg data. Barclays estimates US leveraged ETF rebalancing has averaged about $20 billion a day over the past 10 sessions, roughly four times the one-year average, while Nomura strategists say these products generate about $9 billion of rebalancing demand for every 1% market move. The 16 leveraged ETFs tracking Korean chipmakers have ballooned from $3 billion at their May launch to more than $9 billion, amplifying moves in stocks like Samsung Electronics and SK Hynix.