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Broadcom IncNVIDIA CorporationSouth Korea's Finance Minister apologized for introducing leveraged ETFs as the KOSPI Composite Index rout continues. Leveraged funds like the Direxion Daily Semiconductor Bull 3X Shares, ticker SOXL, have plunged nearly 68% since the June 22nd high in semiconductor stocks, while the underlying Philadelphia Semiconductor Index fell about 28%. These daily-reset instruments can deviate significantly from their stated multiple over longer periods, sometimes losing money even when the underlying index rises in volatile markets. The pain is especially acute in Korea, where leveraged ETFs are a more recent phenomenon and some investors have reportedly mortgaged their homes to invest, now facing steep losses.
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