On October 1, Direxion Daily MSCI South Korea Bull 3x Shares declined 8.03% in regular trading, trading at $19.78/share, with turnover of approximately $297 million.

The decline reflects the underlying KOSPI index's catastrophic Q3 performance, with the benchmark plunging approximately 19.3% over the quarter — its steepest quarterly loss since Q1 2020 and the worst among all major global equity markets. As a triple-leveraged bull ETF tracking the MSCI South Korea Index, KORU amplified the benchmark's losses.

The quarterly rout was primarily triggered by a violent unwinding of AI memory trade positions in July, with Samsung Electronics and SK Hynix — which together account for roughly half of Korea's total market capitalization — suffering concentrated selling. Leveraged liquidations further exacerbated the downturn. Foreign capital outflows, surging U.S. Treasury yields, and a broader retreat from global AI-related trades formed a triple headwind for Korean equities. Forward P/E ratios for both chipmakers have contracted to the 4-to-5x range. While analysts note valuations have meaningfully corrected, risks from rising global bond yields and potential memory chip oversupply may continue to cap any rebound, even as AI infrastructure investment sustains underlying chip demand.

Direxion Daily MSCI South Korea Bull 3x Shares 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 fund is non-diversified.

(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.)