Global leveraged and inverse single-stock ETFs are expanding rapidly. Data tracked by Goldman Sachs trader Chris Lucas shows that the total size of these products has exceeded $60 billion, more than doubling since early April. The most concentrated flow of funds has shifted from large-cap U.S. tech stocks to memory chip stocks within the AI industry chain.

Expansion in the US, Hong Kong and South Korea

The US remains the largest market, with a size of approximately $46 billion, accounting for about 70%. The Hong Kong market is worth approximately $13 billion, with net inflows of about $10 billion over the past two months. The South Korean market is worth approximately $3.3 billion, and just this week completed the listing of its first batch of single-stock ETFs.

Hynix products become the largest single-ticket ETF.

The world's largest leveraged single-stock ETF is one that offers 2x long exposure to SK Hynix. The newly listed SK Hynix ETF and Samsung Electronics ETF in South Korea this week attracted approximately $1.2 billion and $816 million respectively within two days of listing.

Goldman Sachs warns of volatility risk

Goldman Sachs did not offer a directional prediction for this round of demand, but pointed out that leveraged single-stock ETFs could trigger concentrated selling during periods of sharp price fluctuations in their underlying assets, amplifying stock price volatility. Traders also expressed concern about the rapid expansion of these products, believing that market crowding is increasing.