Korea's single-stock leveraged ETFs are abnormally amplifying price volatility in Samsung Electronics and SK hynix, with potential spillover to Nasdaq-listed ADRs, according to Nikkei analysis. Assets under management exceeded $50 billion by June, a 2.3-fold yearly increase, with new products targeting memory semiconductor stocks.

The two chipmakers represent about half of KOSPI's market capitalization, magnifying leveraged ETF trading's index impact. SK hynix's 110% annualized volatility over 20 days dwarfs the S&P 500's 15%, which Nikkei attributes to the May-launched single-stock leveraged ETF.

Leveraged ETFs target double daily returns through daily rebalancing—buying on rises, selling on falls—which inflates volatility, especially during concentrated pre-close trading. Nikkei warns this volatility may spread to U.S. markets via SK hynix ADRs, noting Japan lacks such single-stock leveraged products. Korea's financial supervisor reportedly questioned whether approval should have been blocked.