Volatility of Seoul stock index drops after curbs on leveraged ETFs
The fear gauge of Korea's stock market has dropped after authorities took steps to curb the 16 single-stock leveraged exchange-traded funds (ETFs) blamed for recent market volatility, the bourse operator said Monday. Financial authorities raised the minimum cash deposit for single-stock leveraged ETF investments on July 31, as the speculative investment products triggered wild swings on the stock…
South Korea's stock market experienced a downturn in volatility after authorities imposed restrictions on 16 single-stock leveraged exchange-traded funds (ETFs), according to the Korea Exchange (KRX). The fear gauge, known as VKOSPI, fell to 69.87 on Monday, marking an 18.91 percent decrease from its previous level of 86.18 on July 30.
This was the first time since May 28 that the index dipped below 70. The KRX announced on July 31 that the minimum cash deposit for investing in these single-stock leveraged ETFs was raised from 10 million won to 30 million won. These ETFs, which track Samsung Electronics and SK hynix stocks, were introduced in May and have been linked to the market's recent fluctuations.
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- Volatility of Seoul stock index drops after curbs on leveraged ETFs koreatimes.co.kr
