Kioxia Holdings, a Tokyo-based memory chipmaker, could see increased volatility after at least nine leveraged exchange-traded funds (ETFs) tied to its shares or American depositary receipts were proposed in the US.

If approved, they would be the first single-stock leveraged ETFs linked to a Japanese company.

Filings show Tuttle Capital Management, GraniteShares Advisors, and Corgi Strategies are seeking funds offering 2x Kioxia’s daily return or 2x the inverse of that return. Tuttle aims to list one as soon as next month.

Kioxia’s AI exposure mainly comes from NAND flash storage rather than high-bandwidth memory. Broader AI memory supply has been sold out into 2027, helping explain earlier enthusiasm for Kioxia shares.

The US Securities and Exchange Commission (SEC) says leveraged and inverse ETFs reset daily, so returns over longer periods can differ significantly from the underlying stock, and losses can be amplified in volatile markets.

Kioxia briefly became Japan’s most valuable company in early June before its market capitalisation halved.

Japan does not allow domestically listed single-stock leveraged ETFs, while South Korea has halted new listings of such products.

🔗 Source: Bloomberg