Leverage in South Korean chip stocks is out of control:
Single-stock leveraged and inverse ETFs tracking SK Hynix now hold ~$19 billion in total assets, more than 4 times the stock's average daily trading volume this year of ~$4.5 billion.
At the same time, Samsung has ~$12.4 billion in leveraged ETF assets, +176% above its ~$4.5 billion in average daily turnover.
Furthermore, the Hong Kong-listed 2x leveraged long SK Hynix ETF, which holds ~$13 billion in assets, is worth about twice the value of SK Hynix shares traded on an average day, the widest gap of any major stock with a leveraged ETF tracking it.
By comparison, Micron, $MU, has ~$9.9 billion in leveraged ETF assets, well below its ~$27.5 billion in average daily trading volume.
All while Tesla, $TSLA, and Nvidia, $NVDA, have leveraged ETF assets of ~$6.0 billion and ~$5.6 billion, both far smaller than their daily trading volumes of ~$23.6 billion and ~$28.8 billion, respectively.
Leverage concentration in Korean chip stocks is through the roof.
