---
title: "Leveraged ETFs Lose 60% of AUM in Two Months; Negative Compounding Effect Crushes Leveraged Traders"
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/43027528.md"
description: "Hong Kong storage concept stocks were hit across the board. Southern Two Times Long Hynix ETF (07709) closed down 30.24% at HK$38.02, with an asset size of $13.07 billion at the end of June, shrinking to $5.752 billion by July 27, evaporating 56%. Southern Two Times Long Samsung Electronics ETF (07747) fell 26.73%, with its scale shrinking from $3.738 billion to $1.23 billion, a decline of nearly 70%. Goldman Sachs pointed out that the core driver of the sharp drop in Korean stocks is the concentrated de-leveraging of leveraged ETFs, with two heavyweight stocks accounting for 60% of the index and highly concentrated leverage funds..."
datetime: "2026-07-29T07:52:25.000Z"
locales:
  - [en](https://longbridge.com/en/topics/43027528.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/43027528.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/43027528.md)
author: "[騎牛睇熊操盤日誌](https://longbridge.com/en/profiles/2081290794437791744.md)"
---

# Leveraged ETFs Lose 60% of AUM in Two Months; Negative Compounding Effect Crushes Leveraged Traders

Hong Kong stock storage concept stocks were hit across the board. Southern Two Times Long Hynix ETF (07709) closed down 30.24% at HK$38.02. With an asset size of $13.07 billion at the end of June, it shrank to $5.752 billion by July 27, evaporating 56%. Southern Two Times Long Samsung Electronics ETF (07747) fell 26.73%, with its scale shrinking from $3.738 billion to $1.23 billion, a decline of nearly 70%. Goldman Sachs pointed out that the core driver behind the crash in Korean stocks was the concentrated deleveraging of leveraged ETFs. The two weighted stocks accounted for 60% of the index, and with highly concentrated leverage funds, they are extremely susceptible to amplification under external shocks.

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