Leverage ETF Inflows Surge to 2.61T Won as Semiconductor Stocks Plunge

According to Financial News and Korea Exchange data, leverage exchange-traded funds (ETFs) tracking Samsung Electronics and SK Hynix accounted for 27.6% of total ETF trading as of July 8, despite semiconductor stocks falling sharply this month. Samsung and SK Hynix dropped 11.38% and 16.94%, respectively, yet investors channeled 2.61 trillion won into single-stock leverage ETFs over the past week through July 7.

Market analysts warned that leverage products amplify both gains and losses two-fold, and volatile swings can trigger negative compounding effects that erode principal. Researchers advise cautious approaches during high-volatility periods, favoring gradual dollar-cost averaging over leveraged bets.