SK Hynix's stock surge has led to a significant drop in inverse exchange-traded funds (ETFs) and exchange-traded notes (ETNs) that bet against the market.
As of 9:32 a.m. on July 31, the SOL SK Hynix Futures Single Stock Inverse 2X ETF was trading at 9,325 won, down 51.47% from the previous trading day. This marked a nearly 10,000 won drop in just one day, the largest decline among inverse products.
Other products betting on a decline in semiconductor stocks also saw significant losses. The Kiwoom Inverse 2X Semiconductor TOP10 ETN fell by 49.04%, while the Mirae Asset Inverse 2X Semiconductor ETN and Hana Inverse 2X Semiconductor ETN dropped by 46.13% and 46.09%, respectively.
The PLUS Samsung Electronics Futures Single Stock Inverse 2X ETF also experienced a decline of 43.28%. Products betting against the KOSPI 200 index also suffered, with the Mirae Asset Inverse 2X KOSPI 200 Futures ETN B down 35.11%, and other similar products like the Kiwoom 200 Futures Inverse 2X, PLUS 200 Futures Inverse 2X, KODEX 200 Futures Inverse 2X, and TIGER 200 Futures Inverse 2X all seeing declines in the range of 33% to 35%.
The sharp drop in inverse products is attributed to a recent rebound in semiconductor stocks, which had previously attracted buying interest as a defensive measure during market corrections. Notably, the structure of 2X inverse products means that while they gain when the underlying asset declines, their losses can also significantly increase during a market upswing.
* This article has been translated by AI.
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