South Korean Leveraged ETF AUM Hits Record $45B, Up 800% Since 2026
Assets under management in South Korea's leveraged ETFs have surged to a record ~$45 billion, an 800% increase since 2026. Leveraged exposure as a percentage of free float market cap has tripled since January to ~2.9%, while the Hong Kong-listed 2x leveraged SK Hynix ETF peaked at $15 billion, becoming the world's largest single-stock leveraged product.
Assets under management (AUM) in South Korean leveraged ETFs have reached a record ~$45 billion, surging 800% since the start of 2026, according to data cited by The Kobeissi Letter. Leveraged exposure as a percentage of free float market capitalization—shares available for public trading—has risen to ~2.9%, more than tripling since January.
The Hong Kong-listed 2x leveraged long SK Hynix ETF peaked at ~$15 billion in assets, making it the largest single-stock leveraged product globally. For context, the four largest US single-stock 2x leveraged ETFs—tracking Micron ($MU), Nvidia ($NVDA), SanDisk ($SNDK), and Tesla ($TSLA)—have each never exceeded $10 billion in assets.
Analysts describe the situation as extreme, with leverage in South Korean stocks reaching levels not seen before. The rapid growth has raised concerns about market stability and potential unwind risks.
Source: The Kobeissi Letter