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The world’s largest single-stock leveraged ETF just got a little more aggressive. CSOP Asset Management is raising the options investment cap on its SK Hynix Daily (2x) Leveraged Product from 40% to 49% of net asset value, effective June 23.
The fund, trading under ticker 7709.HK, has surpassed HKD 100 billion in assets under management, roughly $12.8 billion. That makes it bigger than any single-stock leveraged ETF on the planet, including US heavyweights like TSLL, the Direxion Daily Tesla 2x fund.
What the options cap change actually means
CSOP’s SK Hynix product aims to deliver 2x the daily performance of SK Hynix common stock, and it primarily uses swaps to get there. Options serve as a supplementary tool. By raising the options ceiling from 40% to 49% of NAV, CSOP is giving itself more room to use options when market conditions call for it. Earlier documentation had noted the cap at just 25% with potential increases, so this represents a meaningful evolution in the fund’s investment strategy since its October 2025 launch.
The announcement was made on June 21, with the change taking effect two days later.
CSOP has disclosed that the combined expenses from swaps and options could run between 15% and 40% of NAV per year under the expanded allocation. The expected average daily tracking difference may also widen to -0.30% with the higher options allocation.
How it became the world’s biggest single-stock leveraged ETF
CSOP launched the SK Hynix leveraged product on October 16, 2025, at a listing price of approximately 7.8 HKD. The fund charges a management fee of 1.6% per annum. CSOP had already launched similar single-stock leveraged products tied to Samsung Electronics earlier in 2025. The SK Hynix fund tapped into Hong Kong’s role as a gateway for Asian technology investment.
What this means for investors
The options cap increase gives CSOP more tactical flexibility to maintain the fund’s 2x daily target. However, CSOP has disclosed that instrument costs could consume up to 40% of NAV annually. The tracking difference widening to -0.30% daily compounds into a meaningful performance gap over 250 trading days. Leveraged ETFs are inherently designed for short-term tactical positions.
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