'We never look at fundamentals': head of single-stock leveraged ETF pioneer opens up [Invest 360]

"When selecting underlying assets, we have absolutely no interest in whether a company is performing well or turning a profit — none of that fundamental analysis matters to us. We look only at clear, measurable figures: market interest, dollar trading volume and volatility."

Russell Tencer, CEO of Tradr ETFs, made the remarks Thursday at a press briefing held in Yeongdeungpo-gu, Seoul. Unlike the traditional equity approach of investing in a promising company's long-term value, he explained, Tradr ETFs products are designed strictly to meet the market's trading demand.

Tradr ETFs may be unfamiliar to some Korean investors. It is a leveraged and inverse ETF brand launched in May 2024 by US asset manager AXS Investments, targeting professional investors and active traders.

Back in 2022, when the business still operated under the AXS name, the firm shook Wall Street by introducing the first-ever single-stock ETFs in the US market — a Tesla inverse ETF (TSLQ) and a 1.5x inverse Nvidia ETF (NVDS).

The firm currently manages 83 leveraged and inverse ETFs using equities, indexes and total return swap derivatives. As of September 2026, its assets under management have surpassed $5 billion.

Tencer said the purpose of his first visit to Korea was straightforward. "About 10 percent of our total AUM — roughly $500 million — belongs to Korean investors," he said. "Korea is a critically important market for us, and I came here to learn about it firsthand and meet Korean investors."

Tradr ETFs has drawn attention from domestic investors by listing a series of leveraged and inverse products tied to Korean stocks, including SK hynix (SKHA, SKHN) and Coupang Inc (CPNX).

Tencer outlined three criteria for bringing a product to market: the underlying asset's dollar trading volume and volatility; directional demand from investors; and the investment horizon — whether daily or calendar reset. "What matters is whether trading demand exists, not a company's long-term growth potential," he said.

Asked why Tradr ETFs has not launched a short (inverse) product for Coupang Inc despite the leveraged ETF falling sharply since its listing, Tencer said the long leveraged ETF's AUM currently sits below $10 million. "That figure would need to rise to at least $100 million to demonstrate sufficient trading demand before we could consider launching an inverse product," he said. Without liquidity and demand proven in numbers, there will be no new product.

On concerns that single-stock leveraged ETFs are amplifying volatility in Korea's domestic capital markets, Tencer said the primary tools for gaining leveraged exposure are derivatives and margin, adding that leveraged ETFs — whether in the US or Korea — represent a very small share of the overall market.

He also addressed the practical impact of regulatory measures introduced by Korean financial authorities targeting single-stock leveraged products. "It is true that trading volume from Korean investors has shown a noticeable declining trend since the regulations took effect," Tencer said.

However, he noted that the drop in AUM terms was not as steep as the decline in trading volume. "The fluctuation in AUM we are currently experiencing has been driven more by the underlying assets' own weak share price performance than by policy factors," he said.

He added that the firm is considering launching additional single-stock ETFs based on Korean technology companies — beyond SK hynix — that have demonstrated sufficient trading volume and volatility in global markets.

With global equity volatility rising amid what he described as overheating investment in AI and power infrastructure, Tencer urged investors to choose the right tool for their investment horizon and to pay particular attention to the structural characteristics of daily leveraged products.

"If you hold a daily reset product for more than one day, volatility drag erodes your returns and it becomes very difficult to achieve the targeted 2x exposure," he said. "For traders who monitor their positions constantly and need to respond to market overheating or panic selling, daily products can be cost-efficient. But for those seeking leveraged exposure over a longer horizon, they should consider calendar reset products that rebalance monthly or quarterly."