The ProShares Ultra SK Hynix ETF (NYSEARCA:SKHU) is sliding hard in Friday’s session, extending a punishing stretch for the newly launched, geared-daily product. The catalyst: SK Hynix’s US-listed ADR has come under fresh pressure this week after the company’s preliminary second-quarter revenue, while up sharply year over year, arrived below Street expectations that had run up alongside the AI memory boom. Because SKHU is a single-stock leveraged ETF that seeks roughly two times the daily return of SK Hynix’s ADR, every down day in the underlying gets doubled, and the compounding of those daily resets has turned an ordinary correction in the ADR into a rout in the fund.
ProShares Ultra SK Hynix ETF (SKHU)
SKHU is down 12% in Friday’s session, quoted around $13 intraday after closing the prior session at $14.75. Over the trailing week the fund is off 9%, and since price history began on July 14, 2026, SKHU is down 52% from a starting price of $30.83. That’s compounding-decay at work: the fund is brand new, with only 18 trading days of history, and volumes can be thin, which tends to widen spreads on days like this.
SKHU obtains its exposure through swaps and other derivatives rather than by holding the Korean-listed shares outright, and it targets a 2x daily objective, meaning “an investment in the Fund will be reduced by an amount equal to 2% for every 1% daily decline” in the underlying ADR before fees and financing costs. On the fee side, the prospectus lists a gross expense ratio of 1.04% and a net expense ratio of 0.95%, well above what a broad-market ETF charges, which is typical for single-stock leveraged products.
SK Hynix ADR (SKHY)
The underlying is SK Hynix (OTC:SKHY), the Korean memory giant whose ADR is quoted at $140.59 as of the most recent print, with a most-recent trading-day change of -7%. Over the past week, the ADR is down 4%, and over the trailing month it has fallen 15% from a starting price of $168.01 on July 10, 2026. Notice how a roughly 15% monthly slide in the ADR has translated into a 52% monthly drawdown in SKHU. In a straight-line world, 2x of 15% would be far smaller. The gap is the daily-reset decay the prospectus flags for holders.
Fundamentally, SK Hynix’s preliminary second-quarter report showed revenue of KRW 79.32 trillion, up 256.8% year over year, but short of a consensus that had drifted to roughly KRW 84 trillion on runaway expectations for high-bandwidth memory. Operating profit of KRW 60.54 trillion was up 557.2% year over year. The results are preliminary and subject to audit revision, and for US ADR holders there is an additional wrinkle: Currency swings feed directly into the ADR’s translated value.
Micron Technology (MU) as Memory Peer Context
Micron Technology (NASDAQ:MU | MU Price Prediction) offers a useful US-listed reference point for the same AI-memory trade that SKHU levers. Micron is trading around $857.87, down 3% in Friday’s session but still up 1% over the trailing week and 209% year to date from a start of $285.23. Over the trailing year Micron is up 712%.
The fundamental backdrop for memory remains extraordinary. Micron’s fiscal third-quarter results, reported June 24, 2026, delivered revenue of $41.456 billion, beating consensus by 17.60%, with non-GAAP EPS of $25.11 versus a $20.28 consensus and a GAAP gross margin of 84.6%. Cloud Memory revenue reached $13.769 billion, and management guided fiscal fourth-quarter revenue to $50.0 billion plus or minus $1.0 billion, with non-GAAP EPS of $31.00 plus or minus $1.00. CEO Sanjay Mehrotra said “Micron’s record fiscal Q3 financial results and even stronger outlook for Q4 reflect the strategic value of memory in the AI era.”
What This Says About Single-Stock Leveraged ETFs
Same memory-cycle news, very different payoffs. Micron dipped a few percent. The SK Hynix ADR gave back a mid-single-digit percentage in its most recent session. SKHU, geared to deliver roughly twice SK Hynix’s daily move, is down more than 11% in a single session and more than half its value since inception less than a month ago. The prospectus warns that “it is even possible that the Fund will lose money over time while the underlying security’s performance increases over a period longer than a single day”. That is a design feature of geared-daily products in volatile stocks, and it is why single-stock leveraged ETFs like SKHU suit the toolkit of short-term traders rather than long-term holders of the AI memory story.
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