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As investors' interest in artificial intelligence trading wanes, two leveraged exchange-traded funds linked to SK Hynix will be liquidated. This is only a few months before listing in the US. The long and short products launched by Tradr ETFs are aimed respectively at providing the Korean chipmaker's American Depositary Receipts with double the yield or double the reverse return in a single day. The ETF issuer said in a statement that both funds will be liquidated around November 12. The stock prices of SK Hynix and its counterpart Samsung Electronics fluctuated sharply this year as investors made large inroads and exits in AI-related stocks. Leveraged ETFs that amplify one-day gains and losses in South Korea and other markets have further exacerbated this fluctuation, but South Korean regulators have recently taken action to tighten regulations on such products.
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As investors' interest in artificial intelligence trading wanes, two leveraged exchange-traded funds linked to SK Hynix will be liquidated. This is only a few months before listing in the US. The long and short products launched by Tradr ETFs are aimed respectively at providing the Korean chipmaker's American Depositary Receipts with double the yield or double the reverse return in a single day. The ETF issuer said in a statement that both funds will be liquidated around November 12. The stock prices of SK Hynix and its counterpart Samsung Electronics fluctuated sharply this year as investors made large inroads and exits in AI-related stocks. Leveraged ETFs that amplify one-day gains and losses in South Korea and other markets have further exacerbated this fluctuation, but South Korean regulators have recently taken action to tighten regulations on such products.
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