Bae Jae Kyu, chief of South Korea’s sixth largest asset manager, has called for a discontinuation of leveraged and inverse exchange-traded funds (ETFs). He advises investors to avoid trading these complex products, suggesting they should be allowed to naturally phase out of the market.

"Leveraged and inverse ETFs are complex products that can lead to significant losses for individual investors," Bae stated. He believes these instruments are not suitable for retail investors due to their inherent risks and the potential for amplified losses, especially over longer holding periods.

Bae’s sentiment reflects a growing concern among financial professionals regarding the accessibility and risks associated with highly speculative investment vehicles. He emphasized that while these products may appeal to short-term traders seeking amplified gains, they often expose investors to unforeseen risks and can be detrimental to their financial well-being. The call for a phase-out signals a desire for a more investor-friendly and less volatile ETF market in South Korea.