SK Hynix-Linked Leveraged ETFs to Liquidate Nov. 12 as Tradr Funds Shrink to $1.3 Million

Two leveraged exchange-traded funds tied to SK Hynix Inc. will be liquidated around Nov. 12, just months after their U.S. debut, as investor appetite for the artificial intelligence trade moderates. Tradr ETFs said the long and short products, which offer twice the daily performance or inverse performance of the South Korean chipmaker's American depositary receipts, will be wound down. The funds debuted July 28, weeks after SK Hynix listed its ADRs. Both have seen assets shrink more than 60% from peak levels to a combined $1.3 million currently. The Tradr 2X Long SK Hynix Daily ETF is down over 5% since launching, while the short fund has fallen 42%; the ADRs have gained about 5% over the same period. SK Hynix's Seoul-listed shares are down 56% from their record high as concerns over high borrowing costs to fund massive infrastructure spending overshadowed AI-boom optimism. Peer Samsung Electronics also saw sharp swings. ProShares, Leverage Shares and Direxion launched similar SK Hynix products.