Single-Stock Leveraged ETFs Trigger VKOSPI Surge to 18-Year High of 91.2 Since May 27 Launch

According to Shinhan Investment Securities, 16 single-stock leveraged ETFs listed on May 27 have triggered a sharp market volatility surge in South Korea. The KOSPI volatility index (VKOSPI) has surged to 91.2—its highest level since the 2008 financial crisis—and currently trades around 88.9 on average, up from a pre-listing baseline of 53.

Annualized volatility for individual stocks backing the leveraged products has doubled. SK Hynix and Samsung Electronics show volatility of 90% and 78% respectively, while their corresponding leveraged ETFs reached 180% and 156%. The leveraged ETFs have averaged approximately 10 trillion won in daily trading volume, with Samsung and SK Hynix representing 65% of the KOSPI 200 index weight.