Korea’s ETF Manager Urges Phase-Out of Leveraged Products

Bae Jae Kyu, chief executive of South Korea's sixth-largest asset manager, called for investors to avoid trading leveraged and inverse exchange-traded funds and said such products should be discontinued. Leveraged ETFs use borrowed money to amplify investment returns, while inverse ETFs move in the opposite direction of their underlying index. Bae did not specify a timeline for the phase-out or provide details on how the discontinuation would be implemented.

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