Micron Technology shares dropped 10% by 11:05 a.m. ET on Tuesday after South Korea’s Financial Supervisory Service governor warned that single-stock leveraged ETFs tracking Samsung and SK Hynix are high-risk products. The 16 ETFs, approved in late May, have tripled in size to more than $9 billion and use 2x leverage, amplifying both gains and losses. Governor Lee Chan-jin said he wished he had blocked their creation, and his warning triggered a sell-off in Korean memory stocks that spilled over to Micron. Investors may be questioning whether Micron’s 847% gain over the past 52 weeks was partly driven by momentum from the Korean memory bubble.
SK Hynix Inc
Micron Technology Inc
Samsung Electronics Co Ltd
NVIDIA Corporation