The regulator says 88% of crude oil ETP assets and 94% of natural gas ETP assets are concentrated in leveraged or inverse products, while elevated premiums and ETN delisting provisions add further risks.
The Financial Supervisory Service (FSS) of South Korea has warned investors about risks related to commodity exchange-traded products (ETP), including exchange-traded funds (ETF) and exchange-traded notes (ETN), due to high concentration of leveraged and inverse products. Most of the crude oil ETPs and natural gas ETPs are leveraged or inverse products, accounting for 88% and 94% of assets, respectively The regulator points out that most of the crude oil ETPs and natural gas ETPs are leverag