A Hong Kong-listed leveraged product tied to South Korean chipmaker SK hynix has become Hong Kong’s largest exchange-traded fund, with assets under management exceeding US$16.8 billion.

The product is overtaking Hong Kong’s Tracker Fund, which has about US$16.2 billion.

Bloomberg Intelligence ETF analyst Rebecca Sin said the fund attracted about US$2 billion in inflows, with the rest of the asset growth coming from market gains.

She also cautioned investors about the product’s daily tracking difference, which measures the gap between an ETF’s return and that of its benchmark over time.

SK hynix shares have risen more than 300% this year, while the Hang Seng Index has fallen about 7.5%. The Tracker Fund, launched in 1999, mirrors the Hang Seng Index.

🔗 Source: Bloomberg

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