Record $65B in Leveraged Asian ETFs, SK Hynix Tracking Anomaly
Leveraged ETFs in South Korea and Taiwan hit a record $65 billion in AUM, up 490% since 2026. A SK Hynix 2x long ETF surged 50% despite a 7.7% drop in the underlying stock, showing a rare tracking divergence.
Assets under management in leveraged South Korean and Taiwanese ETFs have reached an all-time high of $65 billion, according to data cited by The Kobeissi Letter. Since the start of 2026, total AUM has surged 490%.
The spike follows the launch of 16 new single-stock leveraged ETFs tied to Samsung and SK Hynix in South Korea two weeks ago. For comparison, US leveraged ETF AUM sits near a record ~$180 billion.
A notable anomaly occurred on Monday: the SK Hynix 2x Long Leveraged ETF jumped 50% even as SK Hynix shares fell 7.7%. Under normal 2x tracking, the fund should have declined roughly 15%. Other single-stock leveraged ETFs tracking the same stock closed within expected ranges.
The development signals an unprecedented level of retail leverage-taking in Asian markets.
Source: The Kobeissi Letter