SK Hynix Leveraged ETF Plunges Over 18% in a Single Day as Semiconductor Sector Remains Under Pressure
Alina Collins
Two leveraged ETFs tied to SK Hynix fell more than 18% on Tuesday, extending weekly losses to nearly 30%; the damage reaches far beyond one stock — the broader semiconductor sector has shed over 23% since July as AI-trade sentiment cools fast.
How big were the SK Hynix leveraged ETF losses?
GraniteShares 2x Long SK Hynix Daily ETF (SKUU) fell 18.1% on the day and 30.2% for the week. ProShares Ultra SK Hynix ETF (SKHU) fell 18.6% on the day, down nearly 29% for the week.
This means → holders of these 2x leveraged products lost close to a third of their capital in a single week.
In plain terms = a leveraged ETF — a fund that doubles the stock's daily move — amplifies losses just as much as gains. When the stock drops 9%, a 2x fund drops over 18%.
SK Hynix just listed in the U.S. — what went wrong?
SK Hynix listed on Nasdaq this month via ADR — an American depositary receipt that lets foreign companies trade on U.S. exchanges — and immediately ran into an AI-sector sentiment reversal.
Its ADR fell roughly 9% on Tuesday. The Korea-listed stock dropped 14.65%; Samsung Electronics fell 13.39% in tandem.
This reflects a broader cooling of enthusiasm for AI-infrastructure spending. SK Hynix is a key supplier of high-bandwidth memory (HBM) chips used in Nvidia's AI processors; its share price has become a barometer of AI investment sentiment.
How far did the sell-off spread across memory stocks and South Korea?
Micron dropped 8.85%. Sandisk fell 14.25%; the Tradr 2X Long SNDK Daily ETF (SNXX) plunged 28.5% in a single session.
Korean equities were dragged lower across the board: iShares MSCI South Korea ETF (EWY) fell over 6%, and the 3x leveraged Direxion Korea Bull ETF (KORU) dropped 17.8%.
This means → the sell-off has spread from a single stock to the entire memory-chip supply chain and the Korean market — it is not an isolated event.
How does the semiconductor sector compare with the broader market?
iShares Semiconductor ETF (SOXX) fell 4.8% on Tuesday and has now dropped 23.3% since July.
Major U.S. indexes told a different story on the same day: the S&P 500 edged up 0.2%, the Dow rose 1%, and the Nasdaq dipped just 0.2%.
In plain terms = the broad market barely moved while semiconductors kept bleeding — capital is selectively pulling out of AI-linked names.
What extra risks do leveraged ETFs carry on their own?
Leveraged ETFs amplify losses in volatile markets. In extreme conditions, they also face unplanned delisting risk — the fund can be forcibly wound down if its net asset value falls too low.
Multiple issuers are launching leveraged products tied to the same single stock. Intense competition leaves some funds too small to sustain, raising the probability of liquidation.
This means → buying a leveraged ETF means taking on not just magnified market swings but the risk that the product itself may disappear — a risk type most stock investors are not accustomed to.
Content is for reference only, not financial advice.