A 14% drop in the MSCI Korea Index triggered a 42% crash in the 3x leveraged KORU fund, wiping out half its year-to-date gains.
Direxion Daily MSCI South Korea Bull 3X Shares (KORU) collapsed 42% on June 5, 2026, erasing $4,189 from a $10,000 position in a single session. The fund, which amplifies daily moves by three times, saw its share price plummet from $1,050 to $610.
The unleveraged iShares MSCI South Korea ETF (EWY) fell 14% the same day, dropping from $204 to $175. The decline in the MSCI Korea 25/50 Index reflected broader concerns over memory-chip demand, exacerbated by Broadcom’s (AVGO) Q3 AI revenue guidance miss and warnings of slowing high-bandwidth memory (HBM) demand.
Micron (MU) reports earnings June 24, with investors watching for signs of further HBM pricing weakness. The sell-off underscores risks in leveraged ETFs amid volatile market conditions.