Kiwoom KOSDAQ 150 TR ETN Plummets 19% After Price Discrepancy Correction

 
The Kiwoom KOSDAQ 150 TR ETN, which tracks the KOSDAQ 150 Total Return (TR) Index, has dropped over 19% in early trading as a result of a correction from a previous price discrepancy of 24.81%.
 
According to the Korea Exchange on June 24, the Kiwoom KOSDAQ 150 TR ETN was trading at 11,735 won, down 19.07% from the previous trading day.
 
This decline is attributed to the normalization of an abnormally high market price from the previous day, aligning more closely with the indicator value. Investors who purchased at prices above the indicator value may face losses if the underlying index rises, highlighting the need for caution during this normalization process.
 
The ETN closed the previous day at 14,500 won, significantly above the real-time indicator value (IIV) of 11,617.01 won, prompting Kiwoom Securities to issue a disclosure regarding the price discrepancy exceeding 1%. The Kiwoom KOSDAQ 150 TR ETN tracks the performance of the KOSDAQ 150 Total Return (TR) Index, which consists of 150 representative KOSDAQ stocks.
 
Kiwoom Securities explained that the volatility in the previous day's closing price led to a random end at market close, and after 3:31 PM, orders were executed at prices with extremely low liquidity, causing the market price to deviate significantly from the indicator value.
 
The ETN price discrepancy indicates the difference between the market price and the real-time indicator value, serving as a measure of investment risk. A positive discrepancy indicates that the market price is overvalued compared to the indicator value.