Matthew Turtle, CEO of U.S. ETF manager Turtle Capital Management, visited South Korea to discuss the significance of SK Hynix’s American Depositary Receipt (ADR) listing and address the controversy surrounding leveraged products.<\/p>\n
The firm, which manages roughly 70 ETFs with approximately $5 billion in assets under management, recently launched daily 2x leveraged ETFs through T-REX, a joint brand with REX Shares, using SK Hynix ADRs and SpaceX as underlying assets.<\/p>\n
Turtle called SK Hynix’s ADR listing “clearly a game changer for U.S. investors to gain interest in and invest in Hynix,” adding that “accessibility has improved significantly through the ADR listing, and U.S. investor interest in Hynix has grown substantially.”<\/p>\n
He explained that which securities U.S. investors can trade depends on which brokerage holds their accounts, and SK Hynix’s ADR listing has greatly reduced those constraints.<\/p>\n
Samsung Electronics Leveraged ETF Stalled by SEC Rules<\/p>\n
Turtle said the firm is also considering products based on other major South Korean stocks, though he acknowledged practical hurdles remain.<\/p>\n
“We have product concepts based on Samsung Electronics and others, and we’ve submitted application documents, but unfortunately the SEC currently does not allow leveraged ETFs on stocks without ADR listings,” he said. For a leveraged ETF based on Samsung Electronics to become a reality, an ADR listing would need to come first.<\/p>\n
Turtle Capital has positioned itself as “Wall Street’s antidote,” with a philosophy of not following conventional Wall Street investment formulas. Notable examples include the Short Innovation ETF (SARK), which inversely tracks the returns of Cathie Wood’s Ark Innovation ETF, and the Inverse Cramer ETF, which bets against Jim Cramer’s investment recommendations.<\/p>\n
The firm’s investment principles are summarized as “HEAT.” H (Hedge) means managing portfolio risk by flexibly operating long and short positions in response to market changes. E (Edge) means finding competitive advantages in trading signals and product structures that the market has not discovered. A (Asymmetry) refers to asymmetric strategies that capture larger gains in up markets while minimizing losses in down markets. T (Theme) means identifying long-term industries and macroeconomic and cultural themes that will drive the future.<\/p>\n
“Leveraged ETFs Are Not the Culprit Behind Volatility”<\/p>\n
Addressing recent controversy in the South Korean market over whether single-stock leveraged ETFs have amplified stock market volatility, Turtle made clear he disagrees with that view.<\/p>\n
“I don’t believe single-stock leveraged products have increased stock market volatility,” he said. “When leveraged products are launched on stocks that are popular with investors, and many investors take interest and invest, it’s natural for that stock’s volatility to increase.” His point: leveraged products don’t create volatility\u2014rather, products are built on stocks where investor interest has already driven up volatility.<\/p>\n
“Even without leveraged products, I believe investors interested in a particular stock would have invested through options, single-stock futures, or other forms of ETFs,” he added.<\/p>\n
He also stressed the importance of investor education regarding the structural characteristics of leveraged ETFs. Because these products reset their returns on a daily basis, they differ from conventional ETFs, and investors intending to hold for more than one day need to understand that distinction more clearly.<\/p>\n
Focus on AI Bottlenecks and SpaceX<\/p>\n
The investment theme Turtle Capital is currently watching is the “bottleneck” in artificial intelligence. “We focus on and invest in stocks related to bottlenecks that are preventing AI from fully realizing its potential,” Turtle explained.<\/p>\n
Specifically, the firm is tracking two developments: “companies that can deliver cheaper memory than what’s available today” and “companies that can bypass the memory bottleneck with alternative approaches.”<\/p>\n
On SpaceX’s plans to build space-based data centers, he called it “a highly reasonable and realistic plan,” adding, “I don’t oppose anything Elon Musk does.” He noted that “there is a lot of resistance to data center construction in the U.S. right now, and it’s becoming a highly politicized issue.”<\/p>\n
He predicted that the space industry will extend beyond data center construction to power generation, transportation, logistics, mining, and other sectors linked in the same value chain, creating growth opportunities across multiple industries.<\/p>\n
Turtle Capital Management, founded in 2012, is an independent U.S. ETF manager overseeing roughly 70 active ETFs and approximately $5 billion in assets as of July.<\/p>\n","protected":false},"excerpt":{"rendered":"Matthew Turtle, CEO of U.S. ETF manager Turtle Capital Management, visited South Korea to discuss the significance of…\n","protected":false},"author":2,"featured_media":146944,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[44194,616,74689,11149,276,241,240,275,25678,74690,74688,12849],"class_list":["post-146943","post","type-post","status-publish","format-standard","has-post-thumbnail","category-sk","tag-ark-innovation-etf","tag-jim-cramer","tag-matthew-turtle","tag-rex-shares","tag-samsung-electronics","tag-sk","tag-sk-group","tag-sk-hynix","tag-spacex","tag-t-rex","tag-turtle-capital-management","tag-u-s-securities-and-exchange-commission"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts\/146943","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/comments?post=146943"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts\/146943\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/media\/146944"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/media?parent=146943"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/categories?post=146943"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/tags?post=146943"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}