Direxion enters SK Hynix space with SKHL, a high-risk 2X leveraged fund

Direxion has launched a new exchange-traded fund that gives traders amplified daily exposure to South Korean memory-chip giant SK hynix. The Direxion Daily SK Hynix Bull 2X ETF (NYSEARCA:SKHL) is dated July 15, 2026 in its prospectus and lists on NYSE Arca. The fund is run by Rafferty Asset Management, the firm behind the Direxion Shares ETF Trust.

SKHL seeks daily investment results, before fees and expenses, equal to 200% of the performance of the American depositary receipts of SK hynix Inc. (NASDAQ: SKHY). The fund's expense ratio is not disclosed in the materials reviewed for this article, so investors should check the current prospectus on Direxion's site before trading. Direxion's other daily 2X single-stock funds typically carry annual fees in the neighborhood of roughly 1%, but the exact figure for SKHL should be confirmed from the fund page.

What the Fund Does

SKHL is a leveraged, single-stock ETF. If SK hynix's U.S.-listed ADR rises 1% on a given day, the fund is designed to gain about 2%. If the ADR falls 1%, the fund is designed to lose about 2%.

To get that doubled exposure, the fund uses swap agreements with major global financial institutions, which are contracts that pay out based on the daily return of the underlying shares. The manager rebalances the portfolio at the close of each trading day so exposure stays at 200% of net assets. That daily reset is the single most important feature for retail investors to grasp. Because gains and losses compound off a new base every day, holding the fund for weeks or months can produce returns that look very different from simply doubling the stock's move over the same period. In a choppy, sideways market, that math typically works against holders. Direxion states in the prospectus that the fund is intended to be used as a short-term trading vehicle and is not appropriate for investors who do not intend to actively monitor and manage their portfolios.

The underlying company, SK hynix, is a South Korean global semiconductor company that manufactures and sells memory semiconductors, including DRAM and NAND Flash memory, and also runs a foundry business. Direxion notes SK hynix's market capitalization is over $1 trillion USD and that the company sits in the information technology sector with exposure to artificial intelligence. The ADRs are new: SK hynix commenced its public offering of American Depositary Shares in July 2026, which the prospectus flags as an additional source of volatility and liquidity risk.

Why It Exists and How It Stacks Up

Direxion's stated rationale is straightforward: give active traders a way to express a very short-term, high-conviction view on SK hynix without buying options or trading on margin. The daily reset and 2X structure are the same mechanics Direxion uses across its Bull 2X single-stock lineup.

SKHL is not alone in the SK hynix ETF aisle. ProShares Ultra SK hynix (NYSEARCA:SKHU) offers similar 2X daily exposure and, per its most recent prospectus, carries a gross expense ratio of 1.04% and a net ratio of 0.95%, or about $95 a year on a $10,000 investment at the net rate. An income-oriented alternative, the Kurv SK Hynix Enhanced Income ETF (NASDAQ:SKH), charges 0.99%, or about $99 a year on $10,000, but uses a different, options-based strategy rather than leverage.

Who It Might Suit, and the Risks

The prospectus is blunt about the audience. SKHL is designed for traders who want to make a short-term, directional bet on SK hynix ADRs and who plan to watch the position closely, often intraday. It is not designed as a long-term core holding.

The risks stack up quickly. The fund has no performance history, so there is nothing to judge it by yet. New ETFs often launch with small assets and wide bid-ask spreads, and if assets fail to grow the fund can close. Leverage magnifies losses as well as gains. Daily compounding can erode returns during volatile stretches even if the underlying stock ends flat. Exposure is concentrated in a single foreign company whose ADRs are themselves newly issued, and the underlying shares have moved sharply in recent sessions, with SK hynix trading around $27.77 on July 21, 2026. The prospectus also warns that distributions by the fund may be significantly higher than those of most other ETFs, which can create tax complications in a taxable account.

What to watch from here is straightforward: how quickly SKHL gathers assets, how tight its trading spreads become, and how closely its daily returns track the intended 2X target once it has a few months of real trading behind it.

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