[Edaily Reporter Park Soon-yeop] KODEX single-stock leveraged exchange-traded funds (ETFs) based on #SamsungElectronics and #SKHynix have ranked first in terms of net buying by individual investors, trading volume, and net assets just two weeks after their listing. As individual investors’ demand for leveraged exposure to major semiconductor stocks intensifies, Samsung Asset Management’s products are rapidly gaining market share in the nascent single-stock leveraged market.
According to Samsung Asset Management on the 11th, the “KODEX SK Hynix Single-Stock Leverage” and “KODEX Samsung Electronics Single-Stock Leverage,” which were listed on the 27th of last month, recorded cumulative net purchases by individual investors of 2.3881 trillion won and 1.9815 trillion won, respectively, since their listing. The combined net purchases by individual investors for the two products totaled 4.3696 trillion won, surpassing the 4 trillion won mark.

Looking at the products individually, the KODEX SK Hynix Single Stock Leverage fund ranked first in cumulative net purchases by individual investors among single-stock leverage products. The KODEX Samsung Electronics Single Stock Leverage fund also saw the largest volume of net purchases by individual investors among leverage products based on Samsung Electronics. This indicates that individual funds have been concentrated in leverage products based on the two major domestic semiconductor stocks.
Net asset value also grew rapidly. The net asset value of KODEX SK Hynix Single Stock Leverage was recorded at 2.7138 trillion won, while that of KODEX Samsung Electronics Single Stock Leverage was 2.1461 trillion won. The combined net asset value of the two products reached 4.8599 trillion won.
These two products also ranked among the top in terms of trading volume. The average daily trading value for the KODEX SK Hynix Single Stock Leverage Fund was 2.7614 trillion won, while that for the KODEX Samsung Electronics Single Stock Leverage Fund was 1.9721 trillion won. The average daily trading volume was approximately 103.64 million shares and 77.79 million shares, respectively.
Samsung Asset Management explained that abundant trading volume and liquidity were the factors that drove investor demand. The KODEX SK Hynix Single Stock Leveraged ETF had an average daily trading value approximately 1.8 times higher than competing products tracking the same underlying asset, and its average daily trading volume was more than 1.5 times higher. The KODEX Samsung Electronics Single Stock Leveraged ETF also showed trading value and volume levels approximately 1.6 times and 1.5 times higher, respectively, compared to competing products.
Since single-stock leveraged ETFs are structured to track the price movements of the underlying asset at twice the rate, liquidity and quote management are critical. The higher the trading volume and the tighter the bid-ask spread, the greater the likelihood that investors can trade at their desired prices, and the lower the slippage costs resulting from the difference between bid and ask prices.
Samsung Asset Management has deployed a total of 22 liquidity providers (LPs) to supply quotes for its two single-stock leveraged ETFs. The company notes that this is the largest scale among domestic asset managers. It explains that it is strengthening its quote supply and liquidity management systems in consideration of the product’s characteristics, which involve high volatility in the underlying asset.
Park Seong-cheol, Head of ETF Management Team 1 at Samsung Asset Management, stated, “The fact that the two single-stock leveraged ETFs have been favored by retail investors since their initial listing is due to the support of KODEX’s quote management and liquidity.” He added, “We are focusing our management capabilities on enabling investors to trade efficiently at the desired price and time.”