Sandisk shares plunged 11% Tuesday morning as turmoil in South Korea's leveraged ETF market sparked a broader sell-off in memory chip stocks. South Korea's Financial Supervisory Service approved 16 single-stock leveraged ETFs tracking Samsung and SK Hynix in late May, and these products have since tripled in size to more than $9 billion. FSS Governor Lee Chan-jin warned that he regrets allowing the high-risk products, which are primarily bought by individual investors, and his attempt to cool the market instead triggered a sell-off. The rout raised concerns that Sandisk's 4,700% gain over the past 52 weeks may have been partly driven by momentum from investors seeking alternatives to the Korean memory giants.
Sandisk CorpShares plunged 11% as South Korea leveraged ETF turmoil triggered a sell-off in memory chip stocks, raising concerns that Sandisk's recent gains were partly driven by momentum from investors seeking alternatives to Korean memory giants.
SK Hynix IncSK Hynix is one of the underlying stocks in the South Korea single-stock leveraged ETFs that triggered the sell-off, and the FSS governor's warning caused a broader rout in memory chip stocks.
Samsung Electronics Co LtdSamsung is one of the underlying stocks in the South Korea single-stock leveraged ETFs that triggered the sell-off, and the FSS governor's warning caused a broader rout in memory chip stocks.
NVIDIA Corporation