SK Hynix Slides and the ProShares Ultra SK Hynix ETF (SKHU) Tumbles With It

2 weeks ago 17

Danielle Liverance

Fri, August 7, 2026 astatine 11:59 AM CDT 5 min read

Quick Read

SKHU has collapsed 52% successful conscionable 18 trading days arsenic daily-reset compounding turned SKHY's 15% monthly diminution into a catastrophic drawdown.
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The ProShares Ultra SK Hynix ETF (NYSEARCA:SKHU) is sliding hard successful Friday's session, extending a punishing agelong for the recently launched, geared-daily product. The catalyst: SK Hynix's US-listed ADR has travel nether caller unit this week aft the company's preliminary second-quarter revenue, portion up sharply twelvemonth implicit year, arrived beneath Street expectations that had tally up alongside the AI representation boom. Because SKHU is simply a single-stock leveraged ETF that seeks astir 2 times the regular instrumentality of SK Hynix's ADR, each down time successful the underlying gets doubled, and the compounding of those regular resets has turned an mean correction successful the ADR into a rout successful the fund.

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ProShares Ultra SK Hynix ETF (SKHU)

SKHU is down 12% successful Friday's session, quoted astir $13 intraday aft closing the anterior league astatine $14.75. Over the trailing week the money is disconnected 9%, and since terms past began connected July 14, 2026, SKHU is down 52% from a starting terms of $30.83. That's compounding-decay astatine work: the money is marque new, with lone 18 trading days of history, and volumes tin beryllium thin, which tends to widen spreads connected days similar this.

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SKHU obtains its vulnerability done swaps and different derivatives alternatively than by holding the Korean-listed shares outright, and it targets a 2x regular objective, meaning "an concern successful the Fund volition beryllium reduced by an magnitude adjacent to 2% for each 1% regular decline" successful the underlying ADR earlier fees and financing costs. On the interest side, the prospectus lists a gross disbursal ratio of 1.04% and a nett disbursal ratio of 0.95%, good supra what a broad-market ETF charges, which is emblematic for single-stock leveraged products.

SK Hynix ADR (SKHY)

The underlying is SK Hynix (OTC:SKHY), the Korean representation elephantine whose ADR is quoted astatine $140.59 arsenic of the astir caller print, with a most-recent trading-day alteration of -7%. Over the past week, the ADR is down 4%, and implicit the trailing period it has fallen 15% from a starting terms of $168.01 connected July 10, 2026. Notice however a astir 15% monthly descent successful the ADR has translated into a 52% monthly drawdown successful SKHU. In a straight-line world, 2x of 15% would beryllium acold smaller. The spread is the daily-reset decay the prospectus flags for holders.

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