Tradr ETFs CEO in Seoul Weighs Leveraged ETFs Linked to Kospi Tech Stocks

Russell Tencer, head of U.S. leveraged exchange-traded fund brand Tradr ETFs, said he is considering launching products tied to stocks listed on South Korea’s Kospi, with technology shares a key area of interest. Because Tradr has focused exclusively on leveraged and inverse products, any new offering would most likely be a leveraged ETF based on Kospi constituents.

Tencer made the comments at a press briefing in Seoul’s Yeouido district on September 17. He said Tradr is reviewing products that would use Kospi-listed stocks as underlying assets, but did not disclose specific names or a launch timetable. Tradr ETFs is a leveraged and inverse ETF brand introduced by AXS Investments in 2024. Of its $5 billion in assets under management, 10%, or $500 million, is traded or held by Korean investors.

Tencer attributed this year’s increased volatility in the Kospi and Kosdaq to the artificial intelligence investment cycle. Valuations have risen as investment in AI infrastructure and power became overheated, and shocks such as geopolitical tensions or inflation can spark panic in that environment.

He said market demand, rather than a company’s growth prospects, is the key criterion for selecting underlying assets. The main indicators, he said, are dollar trading volume and volatility. Products such as the 2x Long SK Hynix ETF, ticker SKHA, and the Coupang Leveraged ETF, ticker CPNX, were launched using the same standard.

Among products popular with Korean investors, he cited the 2x Long Sandisk ETF, ticker SNXX, the 2x Long Newsmax ETF, ticker SMU, and the 2x Long Numentum ETF, ticker LITX.

Tencer disagreed with claims that single-stock leveraged ETFs increase market volatility. Derivatives and margin are the main tools for gaining leveraged exposure, while leveraged ETFs account for only a small share of the overall market. Margin carries greater risk and derivatives are more complex, whereas leveraged ETFs are cost-efficient and easy to use, supporting clear growth in the segment.

He added that the share of leverage in an overall portfolio should vary depending on an investor’s risk tolerance, age and suitability. Investors should assess their own risk appetite before using such products. Looking ahead, he identified AI ecosystem beneficiaries including semiconductors and power, drones and autonomous vehicles, and rare earth and mining companies as promising themes.

Park Ju-yeon, Hankyung.com reporter grumpy_cat@hankyung.com