SK Hynix Leverage ETFs Down 76.5%, Need 325% Rise to Break Even

Investors in Samsung and SK Hynix leverage ETFs face deep losses, with SK products down 76.5% and requiring a 325% price surge to recover initial capital.

Woofun AI data shows that investors who purchased leveraged ETFs tied to Samsung Electronics and SK Hynix near their June 25 peaks are enduring significant unrealized losses. By August 14, the underlying stocks had declined 23.43% and 43.61% respectively, resulting in average losses of 52.25% for Samsung-linked ETFs and 76.51% for SK Hynix-linked ETFs. To break even, these funds require price increases of approximately 109.4% and 325.7%. Due to daily rebalancing and volatility decay, achieving breakeven requires the underlying assets to rise roughly 45.2% and 109.1% over the next 20 trading days without any declines.

Current 12-month forward P/E ratios stand at 4.5x for Samsung Electronics and 3.7x for SK Hynix. Kim Dong-won, head of research at KB Securities, stated that demand for memory solutions is projected to expand in the coming years. He indicated that both companies could experience stock price revaluation beginning in the third quarter.