SK Hynix ETF’s assets soar to US$17 billion, biggest in Hong Kong

[HONG KONG] CSOP Asset Management’s leveraged exchange traded product tied to SK Hynix has overtaken the Tracker Fund of Hong Kong to become the city’s largest ETF, highlighting investors’ voracious appetite for risky bets on the booming semiconductor sector.

The Hynix product, launched in October and designed to deliver twice the stock’s daily return, has rapidly amassed more than US$16.8 billion in assets under management as of Monday (Jun 22). That surpasses the US$16.2 billion Tracker Fund, Hong Kong’s first ETF, which mirrors the Hang Seng Index and has long served as the city’s flagship passive investment vehicle.

The shift highlights both demand for high‑growth technology plays and the stark divergence in underlying performance. Shares of memory‑chip giant SK Hynix have jumped over 300 per cent this year, buoyed by strong earnings growth and optimism around artificial intelligence demand. By contrast, the Hang Seng Index has fallen about 7.5 per cent, dragged lower by Chinese megacaps that remain sensitive to the nation’s uneven consumption recovery.

CSOP’s SK Hynix leveraged product “has ridden the AI, chip, tech wave and has returned almost 900 per cent year to date with almost US$2 billion of inflows while the rest is market appreciation”, said Rebecca Sin, an ETF analyst at Bloomberg Intelligence. Investors should also be cautious on the product’s daily tracking difference, according to Sin. BLOOMBERG