CSOP’s SK Hynix leveraged product overtakes Tracker Fund as Hong Kong’s largest ETF

A leveraged ETF tracking South Korea's SK Hynix has surpassed the Tracker Fund of Hong Kong (2800) to become the largest exchange-traded fund in Hong Kong.

The ETF, named CSOP SK Hynix Daily (2x) Leveraged Product (7709), is tied to SK Hynix Semiconductor and aims to deliver twice the stock's daily performance. Its assets under management exceeded US$17.05 billion (HK$132.99 billion) as at Monday, overtaking the HK$126.26 billion recorded by the Tracker Fund of Hong Kong.

The Tracker Fund is a traditional ETF that tracks the performance of the Hang Seng Index, allowing investors to trade a basket of Hong Kong’s most representative blue-chip stocks simultaneously.

CSOP Asset Management's SK Hynix hook-leveraged product has ridden the wave of artificial intelligence, chips, and technology, achieving a return of nearly 900 percent this year and attracting nearly HK$15.6 billion in inflows, with the remaining growth driven by capital appreciation, according to Rebecca Sin, ETF analyst at Bloomberg. 

She also noted that investors should be cautious about the product's daily tracking discrepancies.

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