On July 20, Direxion Daily South Korea Bull 3X Shares rose 8.32% in regular trading, trading at $19.71/share with turnover of $197 million. The leveraged ETF rebounded sharply after suffering consecutive double-digit losses the prior week.

The rebound comes as Korea's leveraged ETF regulatory measures formally landed on July 16, reducing policy uncertainty. The FSC announced a package including tripling minimum margin requirements to 30 million won, suspending new single-stock leveraged ETF listings, and restricting minimum trade sizes to 20 shares. With the regulatory shoe having dropped, extreme uncertainty premiums have partially unwound. Multiple 2x leveraged products tracking Samsung Electronics and SK Hynix posted double-digit rebounds on the same day, with one surging over 21% after cumulative declines exceeding 50%.

The fund had plunged roughly 12.5% on July 17 alone amid Korea's first rate hike since January 2023 and forced deleveraging. Notably, KOSPI itself still closed down 4.46% at 6,516 points on July 20, suggesting the ETF's move reflects a technical oversold recovery rather than a fundamental shift.

The fund invests at least 80% of its net assets in financial instruments providing daily 3x leveraged exposure to the MSCI Korea 25/50 Index, covering approximately 85% of the free float-adjusted market capitalization of South Korean issuers.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)