Samsung, SK Hynix Leveraged ETFs Attract 5.02 Trillion Won in Two Days; Goldman Sachs Warns of Structural Risks

According to Goldman Sachs and Union Press Agency data, 16 leveraged ETFs tracking Samsung Electronics and SK Hynix listed on May 27 accumulated total assets of 5.02 trillion Korean won (approximately $3.36 billion) by May 28. On May 28, KOSPI index fell 0.53% intraday, with Samsung Electronics declining 2.44% and SK Hynix rising 2.05%. Daily trading volume of the 16 products reached 9.62 trillion won, reflecting robust retail demand despite market volatility.

Goldman Sachs' sales division warned that these 2x leveraged and inverse ETFs pose structural risks through daily rebalancing mechanisms. The funds must mechanically buy during rallies and sell during declines to maintain their fixed leverage ratios, effectively acting as "market accelerators" that can amplify volatility. Goldman cautioned that with Samsung and SK Hynix comprising approximately 50% of KOSPI's weighting, forced selling by these multi-billion-dollar funds could potentially double the impact of semiconductor-sector shocks on broader market stability.