Amid cooling investor appetite for AI-driven trading and regulatory steps to curb
demand, leveraged ETFs linked to Korean chipmakers recorded nearly $1bn of
outflows this month. Data compiled by foreign media show leveraged products
tracking Samsung Electronics saw $381m of outflows to date, while those tied to
SK Hynix lost $601m. This is the first monthly outflow since the products
launched in late May. The ETFs aim to deliver twice the daily move of the
chipmakers and were blamed for amplifying volatility during July’s global AI
sell-off, when the Kospi fell about 22% month-on-month. Korean regulators have
raised minimum margin requirements for new investors in these products and
mandated a five-day simulated trading period.
