Direxion Weighs Launch of 2x ETF Tracking South Korean Stocks
Summary
- U.S. asset manager Direxion is considering launching a leveraged ETF designed to deliver twice the performance of the MSCI Korea 25/50 Index.
- Korean investors were net buyers of $244.82 million worth of the U.S.-listed 3x leveraged product KORU this year through Sept. 8.
- Direxion and other asset managers have filed a series of 2x long and short ETFs tied to Anthropic, highlighting rising expectations for an Anthropic listing.
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Also Pursuing 2x Anthropic-Linked Products
Direxion is considering launching an exchange-traded fund that would deliver twice the daily return of South Korean equities. The U.S. asset manager appears to be looking to broaden demand by lowering the leverage on a product line that has already proven popular with Korean investors.
Direxion is reviewing a leveraged ETF tied to two times the performance of the MSCI Korea 25/50 Index, according to the financial investment industry on Sept. 9. The index is made up of large- and mid-cap South Korean stocks including Samsung Electronics. It is also the benchmark tracked by the Direxion Daily MSCI South Korea Bull 3X Shares, or KORU, which Direxion listed in April 2013. The new product would track the same index while reducing leverage to 2x from 3x. Its launch timing and ticker have yet to be determined.
Although KORU is listed in the U.S., it has gained popularity among Korean investors buying overseas securities. Korean investors were net buyers of $244.82 million worth of KORU this year through Sept. 8, according to Seibro, the securities information portal run by the Korea Securities Depository. That ranked 24th among U.S. stocks and ETFs purchased by Korean investors.
Direxion has also filed products tied to Anthropic, which is drawing attention as a major initial public offering candidate. Last month, the firm filed with the U.S. Securities and Exchange Commission for Direxion Daily Anthropic Bull 2X, ticker CLAU, and Direxion Daily Anthropic Bear 2X, ticker CLAD, which would deliver twice the inverse of the stock's daily move.
The new fund could also draw investors who viewed 3x products as too volatile, a financial investment industry official said. Investors bullish on South Korean stocks but reluctant to take on 3x exposure may shift into the product, the person added.
Rex Shares and Tuttle Capital also filed in March for the T-REX 2X Long Anthropic Daily Target ETF. Leverage Shares has separately applied for Anthropic 2x Long, ticker ANUU, and Anthropic 2x Short, ticker ANDD. Anthropic is projected to go public between late September and October.
Park Ju-yeon, Hankyung.com reporter grumpy_cat@hankyung.com
Korea Economic Daily
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