SK Hynix Nasdaq debut sparks race to launch leveraged ETFs
SK Hynix, the South Korean chip giant, is about to make its first appearance on the Nasdaq (July 10), and Wall Street is buzzing.
At least 10 fund managers, including Direxion and ProShares, are racing to launch new ETFs that track SK Hynix's US shares (ADRs).
Most of these are leveraged or inverse funds, riding the excitement after SK Hynix's $26.5 billion US listing this week.
SK Hynix 2x ETFs worry regulators
ThemesETFs and CorgiFunds are both rolling out 2x leveraged ETFs right after the debut, with launches set for July 13. Direxion has its own version in the pipeline too.
While these ETFs could give investors more ways to trade SK Hynix stock, regulators in South Korea have raised concerns before, worrying that leveraged products might shake up markets a bit too much.