A leveraged exchange traded product tracking SK Hynix Inc. has become Hong Kong's largest ETF, reaching $16.8 billion in assets under management. Launched by CSOP Asset Management Ltd. in October, the fund aims to deliver twice the semiconductor giant's daily return, capitalizing on surging investor appetite for tech sector exposure.

The product's explosive growth comes as SK Hynix shares have rallied more than 300% this year, driven by artificial intelligence demand and strong earnings. This starkly contrasts with Hong Kong's benchmark Hang Seng Index, which has declined roughly 7.5% amid struggles with Chinese megacap stocks and uneven domestic consumption recovery.

According to Rebecca Sin, an ETF analyst at Bloomberg Intelligence, the fund has generated nearly 900% returns year-to-date through a combination of $2 billion in new inflows and significant market appreciation. However, Sin cautioned investors about the product's daily tracking differences, which can erode returns over extended holding periods.

The leveraged ETF ranks as Hong Kong's top inflow recipient this year, trailing only CSOP's Samsung Electronics leveraged product, which has attracted approximately $2.2 billion since launching in May 2023. This shift signals a clear preference among regional investors toward high-growth technology plays over traditional broad market exposure.