The ETF market is pushing the limits of the leverage it can handle. SK Hynix is the latest example

Single-stock ETFs with leverage have grown in number and trading volume. SK Hynix became the subject of trading activity in leveraged single-stock ETFs, which amplify gains and losses on individual stocks. Market analysts have noted increased leverage use in this segment of the ETF market. The growth of leveraged single-stock ETFs represents a shift from the original ETF market focus on low-cost, tax-efficient index tracking.

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