[Edaily Reporter Park Sun-Yeop ] As the KOSPI has recently experienced repeated sharp swings, trading in inverse products—which bet on a decline—and leveraged products—which aim to capitalize on a rebound—is simultaneously heating up in the exchange-traded fund (ETF) market. In particular, as single-stock leveraged and inverse products have entered the top ranks by trading volume in large numbers, concerns are growing over frequent turnover and increased volatility.
According to the Korea Exchange on the 12th, inverse and leveraged products accounted for all 10 of the top-traded ETFs from June 1 through the 10th of this month. Among these, five were single-stock leveraged and inverse products based on the SamsungElectronics(005930), and SK hynix(000660).

The top-traded ETF was the “KODEX 200 Futures Inverse 2X,” with 314.6 billion units traded during this period. The “KODEX Inverse” followed with 30.4 billion units, and the “SOL SK hynix Futures Single-Stock Inverse 2X” took third place with 5.0 billion units. “KODEX SK hynix Single Stock Leverage” and “TIGER 200 Futures Inverse 2X” ranked fourth and fifth, with 4.2 billion and 2.9 billion contracts, respectively.
Four of the top five were inverse products betting on declines in indices or individual stocks. However, when the scope was expanded to the top 10, the strong performance of leverage products became more pronounced. “TIGER SK hynix Single-Stock Leverage” ranked 6th, “KODEX SamsungElectronics Single-Stock Leverage” ranked 7th, and “TIGER SamsungElectronics Single-Stock Leverage” ranked 10th. Products that track the daily returns of the KOSDAQ 150 and the secondary battery sector at double the rate also ranked 8th and 9th, respectively.
Compared to the period from the beginning of the year through the end of May, the shift in trading patterns is clear. At that time, four of the top five in trading volume were inverse products, while leverage products were limited to just one: the “KODEX Secondary Battery Industry Leverage.” The top 10 also included three standard ETFs that track indices in the forward direction.
However, following the listing of single-stock leverage and inverse ETFs on May 27, products linked to SamsungElectronics and SK hynix quickly rose to the top of the trading rankings. This is interpreted as a result of both demand for betting on a decline and demand for capitalizing on short-term rebounds increasing simultaneously, as the market fluctuated sharply—from the KOSPI breaking through the 9,000 mark for the first time in history on the 18th of last month to falling to 7,291.91 on the 9th of this month.
The size of the leveraged ETF market has also expanded rapidly. According to MIRAE ASSET SECURITIES, the net assets of domestic leveraged ETFs rose from 9 trillion won last year to 41 trillion won last month. Since the listing of single-stock leveraged ETFs for SamsungElectronics and SK hynix, cumulative net purchases by retail investors reached approximately 11 trillion won as of late last month, and the average daily trading value has stood at 13 trillion won since mid-June.
While trading volume alone cannot determine actual turnover rates, concerns have been raised about excessive trading as products with a strong short-term trading nature dominate the top ranks of trading activity. Lee Chan-jin, Chairman of the Financial Supervisory Service, stated at a press briefing on the 22nd of last month regarding single-stock leveraged ETFs, “Turnover rates have been as high as nearly 200%.”
Retail investors have been buying up large-cap semiconductor-related leveraged products in large numbers this month, even as these stocks have been undergoing a correction. From the 1st to the 10th, retail investors made net purchases of 1.6624 trillion won worth of seven SK hynix single-stock leveraged ETFs. This contrasts with net sales of 1.5724 trillion won by institutions and 136.1 billion won by foreign investors.
Retail investors also poured 599.1 billion won into seven leveraged products tied exclusively to SamsungElectronics. During the same period, institutions net sold 516.6 billion won worth of these products, while foreign investors net bought 45.4 billion won worth. The total amount spent by retail investors on the 14 leveraged products related to SamsungElectronics and SK hynix alone reached 2.2615 trillion won.
The problem is that the operational structure of leveraged ETFs can amplify market volatility. Leveraged ETFs are managed by buying more when the price of the underlying asset rises and selling more when it falls, in order to maintain their target leverage ratio daily.
Yoo Myung-gan, an analyst at MIRAE ASSET SECURITIES, described this as a “short-gamma structure that buys on the way up and sells on the way down,” explaining, “If large-cap semiconductor stocks plummet, selling pressure emerges from related ETFs, and additional selling occurs in single-stock and index leveraged ETFs, which can amplify the decline.”
However, analysts note that while leveraged ETFs can amplify short-term fluctuations, they do not determine the medium- to long-term direction of stock prices. Researcher Yoo stated, “Although volatility has increased due to leveraged ETFs, stock price trends ultimately move in tandem with earnings,” suggesting that corporate earnings and fundamentals will dictate the medium- to long-term direction.