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SK Hynix Leveraged ETF Attracts USD1.56B in 1Q26, Surpasses Tesla (TSLA.US) and Microsoft (MSFT.US); Time Gap Between HK and S Korea Markets Creates Arbitrage Opportunities
2026-04-02 15:45:03 According to media reports, leveraged ETFs tracking SK Hynix delivered stunning performance in 1Q26. The CSOP SK Hynix 2x Leveraged ETF (07709.HK) listed in Hong Kong attracted USD1.561 billion in net inflows in the first three months of the year, historically surpassing comparable products linked to traditional tech heavyweights Tesla (TSLA.US) and Microsoft (MSFT.US). Since its launch in October last year, total assets of the SK Hynix 2x ETF have increased to approximately USD2.5 billion. Investor enthusiasm for SK Hynix is mainly driven by its leadership in high-bandwidth memory (HBM). As part of the supply chain of Nvidia (NVDA.US), SK Hynix currently trades at a significant valuation discount compared with US peers such as Micron Technology (MU.US). SK Hynix is trading at about 4.4x forward price-to-earnings ratio, versus 18x for the Philadelphia Stock Exchange Semiconductor Index. Gary Tan, fund manager at Allspring Global Investments, was quoted by Bloomberg as saying that investor appetite for SK Hynix appears to stem from its valuation advantage, with a lower forward P/E making it more attractive relative to US memory peers. As a global leader in the memory sector, this relative positioning has continued to drive strong inflows into these leveraged ETFs despite geopolitical tensions. South Korea is set to launch domestic single-stock leveraged ETFs as early as May, with the first batch covering Samsung Electronics and SK Hynix. South Korean regulators previously banned single-stock leveraged ETFs due to high risk, prompting some local retail investors to turn to Hong Kong to trade leveraged ETFs linked to Korean stocks. Rebecca Sin, analyst at Bloomberg Intelligence, noted that the Hong Kong market offers an additional two hours of trading compared with the South Korean market, creating arbitrage opportunities between the two regions. Differences in currency exposure and hedging mechanisms may also stimulate demand. (da/u)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |