Simeon Hyman joins me now.
He is the global investment strategist at ProShares.
Really grateful for your time today.
Thanks for being here.
Thanks so much for having me.
So you just launched today SKHU.
It is a 2X leveraged ETF specifically for SK Heinx, the South Korean memory giant.
First and foremost, why?
I've got to imagine you're seeing no shortage of appetite for a product like that in the market.
Look, SK Heinx is at the center of the AI boom.
Semiconductor company.
Memory key to the AI infrastructure and indeed there has been great demand for single stock leveraged ETFs, particularly with the ADR coming to market.
We thought it was a great opportunity.
The ticker is SKHU Proshares Ultra SK Heinx, and it does indeed target 2 times the daily performance of the stock.
Talk to me a bit more about how it actually works.
Is there a daily reset and for investors who are watching at home, they hear these headlines about these 2X leverage.
ETF products.
What are the fundamentals about them?
They should know if they're interested in adding it to their own portfolio.
It's pretty simple.
You're right, it targets 2 times the daily performance, and it's a great tool to magnify a bullish view.
You get more exposure with less capital at risk.
Very important, you don't have to worry about a margin call, and you access it with just that ticker in your brokerage account.
What are some of the biggest misconceptions you already see happening out there in the narrative as people talk about products like these?
I think the ecosystem is the piece that people are missing.
You've got the stock, you've got the ADR, you have the leveraged single stock positions, and what that provides is a very robust ecosystem for trading and liquidity, people with different points of view with long term.
Long term perspectives with short term perspectives, and I think that's what people are missing the health of the ecosystem.
What do you think ultimately is driving so much of the demand right now for these sorts of products, not just the one that you and your team, I'm sure are very proud to have released today, but leveraged ETFs overall.
I mean, I think long time investors or even day traders are certainly not going very far day to day today without hearing about products like, it really is that simplicity.
I mean, to be able to have that.
Access to get more exposure with less cash at risk and not have to worry about margin, not have to worry about a margin call and to be able to execute that with just a ticker in your brokerage account really democratizes and gives that opportunity a real easy functional way to do it.
How do you separate signal from noise when you and your team at Proshares are going about trying to figure out what sorts of these comparable products you want to issue and which ones maybe are not quite ready for prime time just yet?
We're always looking.
For the right opportunity and certainly we want robustness and liquidity and all those things.
In this case, the catalyst was indeed the launch of the ADR in the US, but there are lots of ways that we look to innovate and see opportunities.
How else does this fit into your single stock ETF lineup and are there other comparable products that people should also know about?
We have a nice robust lineup.
We're the largest provider of geared leveraged ETFs in the world.
We have about $85 billion.
TQQ. the daily performance of NASDAQ.
Everybody knows that one, but we have a growing lineup of single stock ETFs as well, including SpaceX, Coinbase, Circle, Nvidia, and Tesla.
So we're growing that part of our lineup as well.
I got to imagine this ecosystem, this landscape, no shortage of interest in a lot of those names you just laid out.
There isn't.
There really is not.
Simeon Hyman, global investment strategist at Pro Shares, launching the brand new SKHU earlier today.
Congratulations.
Thanks a lot for being on the show.
It's nice to have you.
Thanks for having me.
