Article: Samsung Electronics, SK Hynix Leveraged ETFs Face Reality Check

BlockBeats News, June 24th, Derivatives and Quantitative Strategist Gordon Schneider pointed out in a report published on Smartkarma that a leveraged exchange-traded fund (ETF) tracking Samsung Electronics and SK Hynix would need to rise by approximately 33% to return to its June 22nd level, implying that its stocks would need to rebound by about 16.5%.

The report stated that on Tuesday, both Samsung Electronics and SK Hynix saw double-digit declines in their stock prices, leading to a nearly 25% downturn in the related ETF prices, with the Samsung 2x Leveraged ETF having fallen 5.4% since its launch on May 27th. He noted that South Korea's newly launched single-stock 2x Leveraged ETF can enhance returns in a trending market but would rapidly erode its value in times of high market volatility, making it most suitable for short-term tactical momentum investing.