Samsung, SK Hynix 2X Leverage ETFs Need 33% Rally to Recover June 22 Levels

According to a report by Smartkarma analyst Godehard Schneider on June 24, 2X leverage exchange-traded funds tracking Samsung Electronics and SK Hynix require a 33% increase to return to June 22 levels, implying the underlying stocks must rally approximately 16.5%.

On June 23, both Samsung and SK Hynix shares declined more than 10%, causing the related 2X leverage ETFs to plunge nearly 25%. Samsung's 2X leverage ETF, launched on May 27, has fallen 5.4% cumulatively since inception. According to Schneider, leveraged ETFs amplify gains in trending markets but erode value rapidly during high volatility.