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single-stock leveraged ETFs
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- 1South Korea's Single-Stock Leveraged ETF Trading Plunges 92%▼South Korea's Single-Stock Leveraged ETF Trading Plunges 92% as Retail Investors Get Trapped in 'Negative Compounding' Quagmire
Trading in single-stock leveraged ETFs in South Korea has collapsed by 92%, with retail investors described as being trapped in a 'negative compounding' quagmire. The leveraged products, which amplify daily moves in individual stocks, are said to erode returns over time through compounding effects, leaving small traders with heavy losses and sharply reduced market activity in these instruments.