KORU is a triple-leveraged ETF on South Korean stocks. Its largest holdings are Samsung, SK Hynix, and other major memory-chip companies, so it’s basically a 3x bet on Korea’s memory-sector rally. Over the past 24 hours, it rose 9.7% on more than $40 million in trading volume, so it’s not a small move.
Last night, the three major U.S. stock indexes all fell, but memory chips moved in the opposite direction, with Micron alone rising 6%. AI servers have been soaking up memory capacity, sending DRAM and NAND prices up across the board, and even smartphones are seeing price increases. I was busy watching those U.S. memory names during the day and didn’t think about Korea having such a leveraged product. By the time KORU showed up, most of the gain had already played out, and I missed the move again.
This thing has seen single-day drops of nearly 20% in the past, and single-day gains of 15% too. That’s just how a 3x leveraged product behaves: when it’s hot, it’s really hot, but when it pulls back in a single day, people holding it may not even be able to eat. For someone like me, who can’t hold a position, it’s better just to watch.
Last night, the three major U.S. stock indexes all fell, but memory chips moved in the opposite direction, with Micron alone rising 6%. AI servers have been soaking up memory capacity, sending DRAM and NAND prices up across the board, and even smartphones are seeing price increases. I was busy watching those U.S. memory names during the day and didn’t think about Korea having such a leveraged product. By the time KORU showed up, most of the gain had already played out, and I missed the move again.
This thing has seen single-day drops of nearly 20% in the past, and single-day gains of 15% too. That’s just how a 3x leveraged product behaves: when it’s hot, it’s really hot, but when it pulls back in a single day, people holding it may not even be able to eat. For someone like me, who can’t hold a position, it’s better just to watch.