Content and data provided by various third parties and Fidelity − Terms of Use | Help/Glossary
Research > ETFs > ETF / ETP Commentary > 

SK Hynix U.S. IPO Could Boost This ETF

BY | ETF Database
12:48 pm ET 07/09/26 | 11 VIEWS
Investors are just a few weeks removed from digesting the SpaceX (SPCX ) initial public offering (IPO), but another big IPO is coming on Friday, July 10, in the form of South Korean memory semiconductor giant SK Hynix.To be clear, that chip stock already trades in its home country. Now it’s reportedly looking to raise $26.5 billion in U.S. share sales that will see the stock trade on the Nasdaq under ticker “SKHY.” The company’s U.S. listing could be an ideal time for tactical short-term traders to consider the Direxion Daily South Korea Bull 3X Shares (KORU B-). The reasoning is simple. KORU attempts to deliver 300% of the daily returns of the MSCI Korea 25/50 Index. That index allocates 19% of its weight to SK Hynix, making the stock the gauge’s second-largest holding, behind only Samsung.How SK Hynix Could Affect KORUAs noted above, KORU is a leveraged ETF that should be treated as short-term instrument. KORU and its brethren are often useful around short-term events, of which Friday’s SK Hynix U.S. listing is certainly one. With those disclaimers out of the way, traders mulling KORU have some important points to consider. Namely, SK Hynix is up eight-fold in 12 months, but off 25% in less than two weeks. That puts it in a bear market. Still, U.S. demand for the stock is high, with some reports suggesting, as of Thursday, that offering is 7x oversubscribed. “For investors in SK Hynix and other memory stocks, the tailwind of intense demand for products that led to steep price increases and big profits is turning into a headwind, amid warnings about a coming supply surge in chip production that will alleviate shortages and likely drive prices down,” noted Morningstar’s Tom Lauricella. KORU could be in focus on Friday due to the sheer size of the SK Hynix IPO. It’s the second-largest behind SpaceX and is the largest U.S. share sale by a foreign company, eclipsing Alibaba’s (BABA) 2014 IPO, according to Lauricella. Speaking of size… “SK Hynix is the second-largest memory semiconductor manufacturer in the world. Recently, the firm has had particular success with high-bandwidth memory chips used in AI servers. Like other companies specializing in AI hardware, huge demand has created bottlenecks and resulted in surging prices for SK Hynix’s products,” observed the Morningstar analyst. KORU could be useful on Friday, but memory is a notoriously cyclical, volatile corner of the semiconductor market. That said, it’s best to not make a long-term commitment to this leveraged ETF. For more news, information, and analysis, visit the Leveraged & Inverse Content Hub.

More Commentary

Defying Rate Pressures: Real Estate ETFs Outpace Broader Market
BY | ETF Database
10:52 am ET 07/09/26 | 17 VIEWS
Not Just Tech: Invest in Innovation With Healthcare
BY | ETF Database
11:46 am ET 07/09/26 | 18 VIEWS
Electrification Surge Fuels Case for Clean Energy ETF ACES
BY | ETF Database
5:12 am ET 07/09/26 | 38 VIEWS
View more Commentary

Search Commentary

Enter Keyword(s)
Filter Results

Performance data shown is past performance and is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Yield and return will vary, therefore you have a gain or loss when you sell your shares. For standard quarterly performance, go to the fund's Snapshot page by clicking on the ETF/ETP's symbol.

ETFs may trade at a premium or discount to their NAV and are subject to the market fluctuations of their underlying investments.

For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain FBS platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares are registered trademarks of BlackRock, Inc. and its affiliates.

FBS receives compensation from the fund's advisor or its affiliates in connection with a marketing program that includes the promotion of this security and other ETFs to customers ("Marketing Program"). The Marketing Program creates incentives for FBS to encourage the purchase of certain ETFs. Additional information about the sources, amounts, and terms of compensation is in the ETF's prospectus and related documents. Please note that this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral.

News, commentary (including "Related Symbols") and events are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.

Any data, charts and other information provided on this page are intended to help self-directed investors evaluate exchange traded products (ETPs), including, but limited to exchange traded funds (ETFs) and exchange traded notes (ETNs). Criteria and inputs entered, including the choice to make ETP comparisons, are at the sole discretion of the user and are solely for the convenience of the user. Analyst opinions, ratings and reports are provided by third-parties unaffiliated with Fidelity. All information supplied or obtained from this page is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell a particular security, or a recommendation or endorsement by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating ETPs. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation and other individual factors and re-evaluate them on a periodic basis.

Before investing in any exchange traded product, you should consider its investment objective, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully.