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'ETF Father' warns: Stop investing in single-stock leveraged and inverse products
🇰🇷 South Korea /Economy & Trade

'ETF Father' warns: Stop investing in single-stock leveraged and inverse products

From Chosun Ilbo · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

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  • Bae Jae-gyu, head of Korea Investment Management and a pioneer of South Korea's ETF market, issued a strong warning against investing in single-stock leveraged and inverse ETFs.
  • He urged investors to stop trading these products, calling it an unusual move for an asset management company CEO to directly advise against investment.
  • Bae, known as the 'Father of ETFs' in Korea, expressed concern over the risks associated with these complex financial instruments.

Bae Jae-gyu, widely recognized as the 'Father of ETFs' in South Korea and CEO of Korea Investment Management, has issued a stark warning against the risks of investing in single-stock leveraged and inverse Exchange Traded Funds (ETFs). He urged investors to cease trading these complex products, a direct and unusual appeal from an asset management leader.

"I know I will be criticized, but I hope you will stop investing right now," Bae stated, emphasizing his strong conviction about the dangers these financial instruments pose. His call for caution comes from a position of deep expertise, having pioneered the ETF market in South Korea.

The warning highlights concerns within the financial industry about the potential for significant losses associated with leveraged and inverse ETFs, particularly for retail investors who may not fully grasp their intricate mechanisms and inherent volatility. Bae's direct intervention signals a growing unease about speculative trading in these products.

I know I will be criticized, but I hope you will stop investing right now.

— Bae Jae-gyuThe CEO of Korea Investment Management issued a strong warning to investors about single-stock leveraged and inverse ETFs.
DistantNews Editorial

Originally published by Chosun Ilbo in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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