US asset managers retreat from Korea-linked leveraged ETFs
U.S. asset managers are pulling back from leveraged exchange-traded funds (ETFs) tied to Korean companies, liquidating existing products and scrapping planned launches as a local stock market downturn dampens investor appetite, industry officials said Monday. Tradr ETFs, a brand of U.S. asset manager AXS Investments, decided on Oct. 20 to delist two funds offering leveraged long and short…
U.S. asset managers are withdrawing from leveraged exchange-traded funds (ETFs) associated with Korean firms due to a local market decline reducing investor interest, according to industry sources on Monday. Tradr ETFs, a brand owned by U.S. asset manager AXS Investments, announced on October 20 that it would delist two funds offering amplified exposure to SK hynix's Nasdaq-listed American depositary receipts (ADRs).
These funds, Tradr 2X Long SK hynix and Tradr 2X Short SK hynix, will stop trading on November 5, with the remaining assets liquidated and distributed by November 12. The fund closures follow their launch three months prior. Industry experts suggest the decision might be due to limited growth potential and challenges in attracting the expected trading volumes and assets under management.
The combined net assets of the two funds were slightly above $2 million as of Friday. In addition, competition in this sector has become more fierce with numerous asset managers entering the market.
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- US asset managers retreat from Korea-linked leveraged ETFs koreatimes.co.kr
