Korean Leveraged ETF Misfires, Jumps 50% Even as SK Hynix Slumps

A leveraged ETF tied to SK Hynix surged 50% on Monday even as the underlying stock fell nearly 8%, highlighting a major pricing dislocation. The fund house said the move was caused by a malfunction in its market-making system rather than fundamentals, making this primarily a trading/market-structure event.

Analysis

A leveraged ETF tied to SK Hynix surged 50% on Monday even as the underlying stock fell nearly 8%, highlighting a major pricing dislocation. The fund house said the move was caused by a malfunction in its market-making system rather than fundamentals, making this primarily a trading/market-structure event.