The Hidden Costs of Leveraged ETFs

A leveraged ETF linked to SK Hynix has grown larger than Hong Kong's oldest ETF, which tracks the Hang Seng Index. The milestone highlights investors' voracious appetite for risky bets on the booming semiconductor sector. However, Bloomberg Intelligence says products such as the SK Hynix 2x Leveraged ETF carry a hidden structural drag that could erode investor returns over time. (Source: Bloomberg)