A Month After Launch, Trading Patterns Shift

In the month since single-stock leveraged ETFs tracking Samsung Electronics and SK Hynix respectively were listed on May 27, trading patterns for both stocks have changed noticeably. From May 27 through June 26, the average daily trading volume for Samsung Electronics near market close (3:20 p.m. to 3:30 p.m.) reached 3,427,995 shares, up 43.4% from 2,391,409 shares recorded in the pre-listing period of May 4 to 26. SK Hynix saw an even sharper rise in the same time window, with volume climbing 51.1% from 431,435 shares to 651,970 shares. By comparison, the increase in full-day average trading volume was 6.4% for Samsung Electronics and 5.9% for SK Hynix, meaning the jump near market close was substantially larger than the increase across the full trading day.

Capital Inflows and the Rebalancing Structure

As of June 19, leveraged ETFs tracking the two stocks had drawn roughly 8.2 trillion won in net inflows, while inverse ETFs tied to them received about 300 billion won. By product, the SK Hynix leveraged ETF attracted 4.6 trillion won and the Samsung Electronics leveraged ETF drew 3.7 trillion won. As of the same date, assets under management (AUM) stood at 9.15 trillion won for the SK Hynix product and 5.22 trillion won for the Samsung Electronics product. Leveraged ETFs adjust their spot and futures positions daily to track twice the daily return of their underlying asset, buying more when prices rise and selling more when prices fall. Because of this mechanism, as AUM grows larger, the scale of rebalancing trades grows proportionally even for the same magnitude of price movement.

Volatility Indicators Show the Shift

Intraday volatility also showed clear changes. As of June 26, Samsung Electronics recorded an intraday price swing of 6.72% and SK Hynix 7.72%, each marking a monthly high for the year. Looking at volatility indexes, the figure for SK Hynix rose from 90% to 101% over the period. During the same span, the volatility index for the Philadelphia Semiconductor Index rose from 46% to 75%, while Micron's climbed from 85% to 126%, indicating that semiconductor-related volatility gauges rose in tandem both domestically and abroad.

Analysis of Underlying Factors

Jang Geun-hyeok, a senior research fellow at the Korea Capital Market Institute, said that as AUM increases, the scale of rebalancing required for the same rate of return movement grows proportionally, and if this trend continues, the ratio of rebalancing trades to overall trading value could rise further, amplifying the impact on volatility. He also noted that the elevated volatility is emerging alongside broader trends in the global semiconductor sector, particularly in the memory chip segment. During periods of rising share prices, AUM can expand rapidly simply through the appreciation of net asset value even without additional capital inflows, which in turn further amplifies the scale of rebalancing trades.