Single-stock leveraged ETFs likely to debut in late May

The Financial Services Commission (FSC) in Seoul / Courtesy of FSC

Single-stock leveraged, or inverse, exchange-traded funds (ETFs) are expected to be introduced on the local stock market in late May, the country's financial regulator said Tuesday.

Single-stock leveraged, or inverse, ETFs are allowed to provide up to twice the daily performance of an underlying stock, according to the Financial Services Commission (FSC).

The regulator said related procedures, including revisions to the enforcement of the Capital Market Act, have been completed.

The FSC said not all stocks are allowed to become underlying assets for the financial products.

A listed firm for leveraged ETFs should meet certain requirements: its average market capitalization should exceed 10 percent of the market's total value, and its average turnover should top 5 percent of the market in total, according to the FSC.

Source: Korea Times News