SK Hynix's US listing drives the leveraged ETF craze, six products to be launched next week.

The record-breaking U.S. listing of SK Hynix has spurred a new round of leveraged products tied to the stock to land on Wall Street. Issuers such as ProShares, Leverage Shares, and Rex Shares are preparing to launch products that are twice as long SK Hynix ADR, some of which are also preparing reverse products. According to information from the issuers' websites, at least six products will be launched next week. SK Hynix leveraged ETF is extremely popular in the Korean market. SK Hynix, Samsung Electronics, and leveraged products collectively account for more than 70% of the trading volume on the Korean stock market, exacerbating the volatility of the KOSPI index. John Cho, portfolio manager of Morgan Stanley Asset Management's Korean stock fund, said, "Part of retail activity seems to be increasingly driven by momentum, and the growth of single stock ETFs has magnified the trading volume and volatility of large-cap stocks. The emergence of leveraged ETFs is not a healthy sign and may foreshadow late-cycle retail behavior." Analysts say that the concentration of single stock leveraged products is starting to affect the stocks they are designed to track. The new batch of leveraged ETPs listed in the U.S. means that daily rebalancing of funds will expand, potentially exacerbating the already high volatility of the market.