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 scaling back their involvement in leveraged exchange-traded funds (ETFs) tied to Korean companies, according to industry officials. In a move prompted by a downturn in the local stock market, these managers are liquidating existing products and canceling planned launches. Tradr ETFs, managed by U.S. asset manager AXS Investments, announced on October 20 that they would delist two funds offering leveraged long and short exposure to SK hynix's American Depositary Receipts (ADRs).
The two funds, Tradr 2X Long SK hynix and Tradr 2X Short SK hynix, will stop trading on November 5, with liquidation and cash distributions planned for around November 12. The closures come just three months after the funds were launched. The asset managers believe the limited prospects for gaining market share and difficulties in attracting anticipated trading volumes and assets under management may have contributed to the decision.
The two funds had combined net assets of slightly over $2 million as of the previous Friday. Competition in this space has also intensified as multiple asset managers navigate the challenging market conditions.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- US asset managers retreat from Korea-linked leveraged ETFs koreatimes.co.kr
