South Korea’s Leveraged ETF AUM Sinks $37 Billion, Down 70% From Peak
Assets under management in South Korean leveraged ETFs have tumbled by $37 billion, or 70%, from their record high just over a month ago, falling to the lowest level since early April.
South Korea’s leveraged ETF market is undergoing a sharp drawdown. Total AUM has plummeted to approximately $16 billion, erasing a -$37 billion loss from the all-time peak reached roughly 30 days prior.
The collapse follows a meteoric +500% surge in assets since the beginning of 2026. Domestic-listed funds, which make up 70% of the total, are driving most of the decline.
With AUM retreating to levels last seen in early April, the unwind marks a significant reversal of the previously exuberant leverage cycle in the country’s ETF space.
Source: The Kobeissi Letter