Gopverse ETFs Fall to 100-Won Range as KOSPI Records Fuel Merger Debate

As the KOSPI continues to set record highs and moves closer to the so-called “8,000 KOSPI” level, prices of “gopverse” exchange-traded funds, which bet twice on a decline in the index, have plunged to around 100 won. According to the Korea Exchange on May 14, KODEX 200 Futures Inverse 2X closed at 104 won, down 3.70% from the previous session. Similar products also remained in the low 100-won range: KIWOOM 200 Futures Inverse 2X at 105 won, RISE 200 Futures Inverse 2X at 107 won, and TIGER 200 Futures Inverse 2X at 112 won. The KODEX product, which inversely tracks twice the daily return of the KOSPI 200 index, traded in the 1,000-won range last September. But as KOSPI rose, it became a penny-like stock below 1,000 won, and a fall into the 10-won range is now being discussed. As excessively low prices can widen tracking problems against the underlying index, calls are growing for a legal basis to allow ETF consolidation and splits. Source: rss.donga.com