South Korea to Launch Single-Stock Leveraged ETFs in Late May
FSC completes regulatory framework allowing up to 2x daily performance for qualified stocks
نظرة سريعة
- South Korea's Financial Services Commission announced single-stock leveraged and inverse ETFs will launch on the local stock market in late May.
- The products can provide up to twice the daily performance of an underlying stock.
- Only stocks with average market capitalization exceeding 10% of total market value and average turnover above 5% qualify as underlying assets.
ملخص مُنشأ بالذكاء الاصطناعي
SEOUL, April 21 (Yonhap) -- Single-stock leveraged, or inverse, exchange-traded funds (ETFs) are expected to be introduced on the local stock market in late May, the country's financial regulator said Tuesday. Single-stock leveraged, or inverse, ETFs are allowed to provide up to twice the daily performance of an underlying stock, according to the Financial Services Commission (FSC). The regulator said related procedures, including revisions to the enforcement of the Capital Market Act, have been completed. The FSC said not all stocks are allowed to become underlying assets for the financial products. A listed firm for leveraged ETFs should meet certain requirements: its average market capitalization should exceed 10 percent of the market's total value, and its average turnover should top 5 percent of the market in total, according to the FSC.
