On July 15, Direxion launched the Direxion Daily SK Hynix Bull 2X ETF SKHL, seeking to replicate double the daily performance of the South Korean semiconductor manufacturers SK Hynix (SKHY). The fund provides leveraged exposure to the world’s leading supplier of high-bandwidth memory chips. It boasts an expense ratio of 97 basis points.
Key Takeaways
- Direxion launched the Direxion Daily SK Hynix Bull 2X ETF (SKHL) on July 15. It provides investors with 2X daily leveraged exposure to the performance of SK Hynix.
- The company operates as a leading memory semiconductor provider. It supplies critical HBM, DRAM, and NAND flash technology to major tech companies like Nvidia, Apple, and Microsoft.
- SK Hynix is now the largest-ever foreign U.S. listing, raising $26.5 billion through its Nasdaq ADR debut. Despite early volatility, the stock continues to attract significant investor interest as a primary memory component supplier.
SK Hynix Makes Market History
SK Hynix began trading on the Nasdaq on July 10, under the temporary conditional ticker SKHYV. This allowed investors to buy and sell shares ahead of regular trading on Monday under the permanent ticker SKHY. The company climbed 14% in its first day of trading as investors flooded to buy exposure to the South Korean chip manufacturer.
The American Depositary Receipt (ADR) offering is now the largest-ever U.S. listing and share sale by a foreign company, opening at $170 per share and raising $26.5 billion, according to the Wall Street Journal.
On Monday prior to U.S. markets opening, SK Hynix plunged 15.4% in South Korea trading. Investors exited positions in the company following its record-breaking Nasdaq debut. The stock fell approximately 9% in U.S. markets on Monday. There, investors booked profits and weighed demand for AI memory chips against the company’s gains this year, according to CNBC.
Despite the Monday decline, shares of the company opened 9% higher than the previous close in U.S. markets on Tuesday. This reflects continued investor enthusiasm for memory chip manufacturers.
Inside the SK Hynix Semiconductor Powerhouse
It operates as a pure-play memory semiconductor company, specializing in high-bandwidth memory (HBM), dynamic random-access memory (DRAM), and NAND flash storage. The company is the primary memory semiconductor supplier to major U.S. tech giants including Microsoft, Apple, and Nvidia — companies that use memory chips to power modern computing, mobile devices, and AI accelerators.
The company has seen extraordinary growth on the Korea Exchange (000660.KS). It has a 12-month return of 634% and a year-to-date return of 235%. In the latest earnings in Q1, SK Hynix reported revenue of approximately $34.5 billion, up 198% year over year, with a record operating margin of 72%.
The launch of SKHL adds to a rapidly growing lineup of over 50 Direxion single stock ETFs including the Direxion Daily TSLA Bull 2X ETF (TSLL ) and the recently launched Direxion Daily SpaceX Bull 2X ETF (LOFF).
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