SK Hynix leveraged ETFs debut in US, widening semiconductor investment

Granite Shares filed with the U.S. Securities and Exchange Commission to launch two new exchange‑traded funds that track SK Hynix stock with double‑day leverage: a long fund (SKUU) and an inverse fund (SKDD). The products aim to give American investors direct exposure to the Korean chipmaker, whose AI‑focused high‑bandwidth memory business has driven a recent surge in its share price. Seven asset managers, including Granite Shares, ProShares and Direxion, are competing to offer leveraged and inverse ETFs based on SK Hynix American Depositary Receipts.

Analysts note that the funds could narrow valuation gaps between SK Hynix and rivals such as Micron, while regulators have warned that leveraged ETFs may increase market volatility. The SEC‑approved filing lists an effective date of 2 July 2024.