US asset managers are liquidating two leveraged exchange-traded funds linked to SK hynix, with trading set to end in early November. Korea Times reports that Tradr ETFs, operated by AXS Investments, decided on Oct. 20 to delist the funds offering leveraged long and short exposure to SK hynix’s Nasdaq-listed American depositary receipts (ADRs). The funds are expected to stop trading on Nov. 5, with liquidation and cash distributions based on net asset values around Nov. 12.
The delisting comes after just about three months since the products launched, and industry officials attribute the move to weaker demand and challenges in attracting trading volumes and assets under management. Bloomberg adds that the decision is tied to cooling investor appetite for the AI trade, framing the pullback as occurring as an AI-related rally cools. While one outlet emphasizes the role of a Korea-linked stock market downturn and product competition, both point to limited investor interest shortly after launch.
