Daily turnover of single-stock leveraged ETFs falls below 1 trillion won after curbs
Key Takeaways
- •The 16 leveraged ETFs recorded daily turnover of 919.8 billion won on Wednesday, below 1 trillion won for the first time since listing.
- •Financial authorities raised the minimum cash deposit for single-stock leveraged ETF investments last Friday.
- •The products had been under scrutiny because of their apparent contribution to recent market volatility.
- •Their daily turnover fell to 3.1 trillion won last Friday from 12.4 trillion won the previous day.
- •Average daily transactions in the ETFs were 1.3 trillion won on Monday and 1.2 trillion won on Tuesday.
Average daily transactions in 16 single-stock leveraged exchange-traded funds fell below 1 trillion won ($701 million) on Wednesday, data showed, after authorities took steps to curb the investment products blamed for recent market volatility.
The daily turnover of the 16 leveraged ETFs stood at 919.8 billion won, according to the Korea Exchange and Yonhap Infomax, the financial data unit of Yonhap News Agency.
It was the first time since May 27, when the 16 leveraged ETFs were listed, that their daily turnover fell below 1 trillion won.
Last Friday, financial authorities raised the minimum cash deposit for single-stock leveraged ETF investments, a move that came after the products drew sharp trading volumes and renewed scrutiny over their role in market swings.
The daily turnover of the 16 leveraged ETFs plunged to 3.1 trillion won last Friday, compared with 12.4 trillion won a day earlier.
Their average daily transactions declined to 1.3 trillion won on Monday and 1.2 trillion won on Tuesday, according to the data. (Yonhap)
