Artificial Intelligence
CSOP expands options capacity for $14.4B SK Hynix leveraged ETF
CSOP Asset Management has increased the options allocation limit for its SK Hynix leveraged ETF, which manages about US$14.4 billion in assets. The change comes as investor interest in AI-related semiconductor companies continues to grow, with SK Hynix benefiting from strong demand for advanced memory chips.
CSOP Asset Management lifted the options allocation limit on its leveraged exchange-traded fund for SK Hynix, amid sustained inflows into the product tied to the artificial intelligence chip market.
The CSOP SK Hynix Daily (2x) Leveraged Product, listed in Hong Kong, can now invest as much as 50% of its net asset value in options, up from a previously set limit of 10%, the latest fund documents show. The product will also still use swaps and other derivatives to aim for double the daily returns of South Korean chipmaker SK Hynix.
The ETF ballooned to about US$14.4 billion in assets in 2026, becoming one of the world’s biggest single-stock leveraged exchange-traded products.
Strong Demand for AI Chip Suppliers Spurs Interest
The change follows sustained investor interest in chipmakers poised to benefit from the expanding artificial intelligence industry.
The company is a major provider of the high-bandwidth memory chips used in AI servers and in systems powered by the technology, boosting its shares and earning expectations.
SK Hynix overtook Samsung Electronics to become South Korea's biggest listed firm by market value this month and has been among beneficiaries of brisk demand from global chip developers and US-based data centers powering the AI push.
Growth in Leveraged Products
Asia is a growing hotbed for leveraged ETF markets, which have drawn more investors targeting specific technology companies.
For American and Australian investors focused on the technology space, products tracking SK Hynix serve as indicator of the ever more influential role of memory chip producers within the global chip supply network alongside giants like Samsung in South Korea and the U.S. Based Micron Technology.
While the update doesn’t change the product’s overall leverage target, it gives the manager of the fund more derivatives to play with as assets under management continue to rise.
FAQs
Q1. What changed in the CSOP SK Hynix ETF?
The fund increased its maximum options allocation from 10% to 50% of net assets.
Q2. How large is the ETF?
The leveraged ETF manages approximately $14.4 billion in assets.
Q3. Why is SK Hynix attracting investor attention?
The company is a major supplier of memory chips used in AI servers and data centres.
Q4. Does the change affect the ETF's return target?
No. The fund still aims to deliver twice the daily performance of SK Hynix shares.
Source: Bloomberg
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