koru stock ETF Guide

KORU — Direxion Daily MSCI South Korea Bull 3X Shares

koru stock is a leveraged exchange-traded fund (ETF) ticker that provides traders with short-term, 3x daily exposure to a South Korea equity benchmark. This guide explains what koru stock is, how it achieves leverage, operational facts, risk characteristics, and practical ways active traders commonly use it. The goal is to give beginners clarity on structure and use without providing investment advice.

Overview

koru stock refers to the ETF listed under the ticker KORU, issued by Direxion. KORU is an exchange-traded fund that seeks daily investment results equal to 300% of the MSCI Korea 25/50 Index. It trades on the NYSE Arca under the ticker KORU and is structured as a leveraged, non-diversified fund. The fund is intended for short-term trading and tactical exposure rather than long-term buy-and-hold investing. Traders often use koru stock to express a directional view on South Korean large- and mid-cap equities with amplified daily returns.

As of 2026-01-20, according to the Direxion product page and prospectus, investors should consult the issuer for up-to-date AUM, NAV, and market price figures before trading. Always verify current data from official fund documents and market quote pages.

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Investment objective and strategy

The stated objective of koru stock (KORU) is to provide 3x (300%) daily leveraged exposure to the MSCI Korea 25/50 Index. The fund achieves this exposure by using financial derivatives such as swaps, futures, options, and other instruments, as well as by holding securities and ETFs that track the underlying index. Direxion typically uses a combination of total return swaps and futures contracts to obtain leveraged exposure while managing cash and fixed income holdings for collateral and liquidity needs.

Because koru stock targets 3x the index on a daily basis, its performance over periods longer than one trading day depends on daily compounding. Daily rebalancing—required to restore the fund’s target leverage each day—can cause multi-day returns to diverge materially from a simple 3x multiple of the index over the same period. This compounding effect can magnify gains in trending markets and accelerate losses in volatile or choppy markets.

The fund’s strategy is dynamic: exposure is reset each business day to maintain the 3x leverage target. That means koru stock is optimized for traders with short holding periods who actively monitor positions.

Benchmark index — MSCI Korea 25/50 Index

The MSCI Korea 25/50 Index is a free-float market-capitalization-weighted index that covers large- and mid-cap segments of the South Korean equity market. The 25/50 rule limits the weight of any single constituent to reduce single-stock concentration risk (no single stock may exceed 25% without restrictions, and aggregate weights are constrained by 50% rules), helping the index stay representative of the market while controlling for outsized issuer concentration.

KORU’s daily target returns are calculated relative to the performance of the MSCI Korea 25/50 Index. Movements in the index—driven by large-cap Korean technology, financial, industrial, and consumer companies—directly influence koru stock returns before fees and expenses.

Leverage mechanics and rebalancing

koru stock implements leverage through derivatives, primarily total return swaps and exchange-traded futures, plus cash management. At the end of each trading day, the fund rebalances its derivatives and cash positions to re-establish the 3x exposure target for the next trading day. This daily reset creates the following practical consequences:

• Compounding effect: If the underlying index rises or falls consistently over multiple days, koru stock’s cumulative return may be close to 3x the index’s cumulative return. If daily returns vary in sign and magnitude, compounded returns can deviate substantially (a phenomenon often called leverage decay or path dependency).
• Volatility drag: In highly volatile markets without a clear directional trend, the fund may lose value over time even if the underlying index finishes near its starting level. This occurs because losses erode capital that must be rebuilt to maintain a constant leveraged exposure.
• Rebalancing costs: Frequent rebalancing requires trading and derivatives rolling, which introduces transaction costs, bid/ask spreads, and potential tracking error versus the theoretical 3x daily multiple.

Example (illustrative, not predictive): If the index rises 2% on Day 1 and falls 2% on Day 2, a non-leveraged investment would be close to flat, but koru stock would not be flat after two days because the 3x returns for each day compound.

Fund facts and operational details

• Issuer: Direxion
• Ticker: KORU
• Primary exchange: NYSE Arca
• Inception date: April 2013
• Structure: Leveraged, non-diversified ETF
• Objective: Provide 300% of the MSCI Korea 25/50 Index daily return
• Expense ratio: Approximately 1.32% (net). Investors should confirm current expense ratios and any temporary fee waivers or expense limitations disclosed by the issuer.

koru stock’s NAV and market price can diverge intraday when liquidity is thin or derivatives valuations move quickly. NAV is calculated at the end of the trading day based on the fund’s holdings and derivative marks, while the market price reflects supply and demand on NYSE Arca during trading hours.

Investors and traders should consult Direxion’s prospectus and fact sheet for the most current fund identifiers such as CUSIP and for any operating expense limits or temporary fee waivers.

Assets, holdings and sector allocation

koru stock’s AUM and holdings composition can change rapidly because leveraged ETFs attract active trading flows. Historically, leveraged single-country ETFs like KORU exhibit smaller AUM compared with broad-market ETFs. As of the latest public documents, check the issuer’s holdings CSV and fact sheet for precise AUM and holdings counts.

Typical holdings and allocation notes for koru stock:

• Number of holdings: The fund may hold a limited basket of Korea-focused securities, derivatives referencing the MSCI Korea 25/50 Index, and other ETFs as part of replication or hedging strategies.
• Concentration: At times KORU may hold other South Korea ETFs or ETFs tracking specific industry baskets as part of its implementation. Such allocations can create indirect single-ticket exposures (for example, a position in a South Korea ETF will itself have concentrated holdings). Always confirm the current holdings file to inspect single-position concentration.
• Sector weightings: Because the MSCI Korea 25/50 Index has a heavy representation from technology (semiconductors and electronics), financials, industrials, and consumer sectors, koru stock’s leveraged exposure will generally amplify those sector exposures. Expect elevated weights in technology and financials relative to some global benchmarks.

As of 2026-01-20, according to the Direxion daily holdings file, consult the official holdings CSV for exact constituents, sector weights, and any large holdings such as Korea-focused ETFs that may amplify concentration.

Performance

koru stock reports performance as a daily multiple of the benchmark. Public performance reporting includes daily returns, cumulative returns for specific periods, and trailing returns (e.g., 1-month, 3-month, YTD). However, because KORU targets 3x daily returns, multi-period performance can differ significantly from 3x the benchmark over the same period.

In practice, koru stock has shown the pattern common to leveraged ETFs:

• Strong short-term performance during clear directional trends in the underlying index (e.g., a sustained rally in Korean equities can produce outsized gains in koru stock over several days).
• Weaker or negative performance over longer holding periods when the underlying index is choppy or reverses, due to daily compounding and volatility drag.

Investors should always consult the latest fund performance table on the issuer’s site for up-to-date NAV and market price returns. Historical patterns illustrate why koru stock is recommended primarily for traders with short-term horizons and active monitoring.

Historical returns and benchmarks

Historical total return series, NAV returns, and market price returns are published by the issuer and major market data providers. To compare koru stock to non‑leveraged alternatives, review returns for the MSCI Korea 25/50 Index and broad South Korea ETFs that track the same or similar indices. Use these comparisons to quantify tracking difference and multi-day divergence attributable to leverage.

Where to find historical returns (official sources):

• Direxion product page and prospectus: official performance tables and daily NAV history
• Major market data sites: quote pages typically include historical price series and total return tables

Volatility and risk metrics

koru stock exhibits elevated volatility compared with non-leveraged Korea exposures. Typical risk metrics include:

• Standard deviation: Expect significantly higher realized volatility than the underlying index—3x leverage amplifies volatility but realized volatility of returns does not scale linearly due to compounding effects.
• Beta: On a short-term (daily) basis, koru stock’s beta relative to the MSCI Korea 25/50 Index should be near 3.0. Over longer horizons, realized beta versus major global benchmarks varies with path dependency and volatility drag.
• Value-at-Risk and drawdown potential: Leveraged ETFs are capable of large intraday moves that create substantial drawdowns. Traders should assess maximum historical drawdowns and scenario analyses before sizing positions in koru stock.

Because koru stock uses derivatives, counterparty risk and roll risk are additional considerations that can affect volatility and returns.

Trading characteristics

Liquidity: koru stock’s liquidity depends on both ETF market volume and liquidity in its underlying derivatives. Average daily trading volume can vary widely. When average volume is low, bid/ask spreads may widen and trading costs increase.

Bid/Ask spreads: In thinly traded sessions, KORU may trade at wider spreads. Use limit orders to control execution price, especially if you are trading large sizes or during low-liquidity periods.

Premiums and discounts: The market price may trade at a premium or discount to NAV intraday. These gaps can be exacerbated near market opens, closes, or during times of rapid index movement.

Intraday pricing: KORU’s price will reflect the market’s valuation of the fund and its derivatives exposure. Intraday implied leverage can vary if underlying instruments move or if derivatives valuations lag.

Order types: Market orders can execute quickly but risk poor fills if liquidity is low or spreads are wide. Limit orders provide price control. For active traders in koru stock, mindful use of limit orders and consideration of time-of-day liquidity patterns are common practice.

Options and short interest: Availability of listed options depends on exchange support and volume. Short interest data may be available via market data providers, and elevated short interest can indicate bearish positioning. Check the exchange’s options listings and the issuer’s disclosures for current information.

Practical trading note: Because koru stock is intended for short-term exposure, many traders enter and exit positions within the same day or over a few days. Clear risk management, position sizing, and stop disciplines are critical.

Distributions and tax treatment

Distribution policy: Direxion reports distributions for the fund as required. KORU may make periodic distributions of dividends or capital gains as reported in official fund communications. The timing and amount of distributions depend on realized income and gains from the fund’s holdings and derivatives.

Tax treatment (U.S. investors): Tax consequences for koru stock can be complex due to the use of derivatives and the fund’s frequent trading activity. Distributions may be treated as ordinary income, qualified dividends (depending on underlying income source), or capital gains. Derivatives-related activity can create specific tax reporting items, such as short-term gains or return-of-capital adjustments.

High-level guidance (not tax advice): Investors should consult a qualified tax professional to understand the implications of trading koru stock, including effects on ordinary income, capital gains, and potential tax reporting complexity. Refer to the fund prospectus and shareholder reports for tax characterization of distributions in a given tax year.

Corporate actions and notable events

Over time, funds may undertake corporate actions such as reverse splits, changes to expense structures, or temporary expense limitations. Direxion publishes material amendments and corporate action notices in regulatory filings.

As of 2026-01-20, according to Direxion announcements, investors should review any past reverse splits, expense limitation agreements, or other operational disclosures in the prospectus and regulatory filings for their potential effects on share count, NAV calculations, and historical performance comparability.

Examples of items to review in corporate action histories:

• Reverse splits that adjust share counts and historical per-share prices
• Expense ratio changes or temporary fee waivers that affect net returns
• Changes to investment objective or index tracking methodology

Risks and suitability

Principal risks associated with koru stock include:

• Leverage and compounding risk: KORU targets 3x the daily return of the MSCI Korea 25/50 Index. Over multiple days, compounded daily returns can diverge from 3x the index’s multi-day return.
• Market risk tied to South Korean equities: Political, macroeconomic, or company-specific events in South Korea can produce rapid price moves in the underlying index and therefore in koru stock.
• Concentration risk: The MSCI Korea 25/50 Index and KORU may have substantial sector or single-stock concentration, increasing idiosyncratic risk.
• Counterparty and derivatives risk: The fund uses swaps, futures, and other derivatives that introduce counterparty exposure. Credit events or margin calls in derivative counterparties can affect fund value.
• Liquidity risk: Limited market liquidity or stressed market conditions can widen spreads and increase trading costs.
• Tracking error and roll risk: Costs and inefficiencies in rolling futures or repricing swaps can cause tracking deviations.

Suitability: Because of these risks, koru stock is generally appropriate only for sophisticated, active traders who understand leveraged ETF mechanics and who can monitor positions closely. It is typically not suitable as a long-term buy-and-hold investment for most investors.

How investors use KORU

Common use cases for koru stock include:

• Short-term directional exposure: Traders looking for amplified daily exposure to a bull move in South Korean equities may use koru stock to express that view.
• Tactical trading: Active traders may add koru stock to exploit short-term setups, momentum, or event-driven moves.
• Hedging and pair trades: Some traders use koru stock in combination with other positions to construct pairs or hedges. Because KORU is leveraged long, it may be combined with inverse or non-leveraged instruments in strategic ways.
• Speculation: Traders may use koru stock to speculate on macro events or earnings-driven moves that are expected to impact South Korean large- and mid-caps.

Practical considerations and discipline:

• Position sizing: Given the amplified risk, small position sizes relative to account capital are commonly recommended by experienced traders.
• Monitoring frequency: Daily or intraday monitoring is often required to manage compounding risk and to react to fast-moving markets.
• Stop-loss rules: Predefined stop-loss levels and strict risk limits help contain downside in leveraged instruments like koru stock.

Regulatory and issuer information

Issuer: Direxion is the fund sponsor and manager. KORU is registered as an exchange-traded fund and listed on NYSE Arca, subject to U.S. securities regulation and exchange rules. Official documents such as the prospectus, statement of additional information, daily holdings, and shareholder reports are filed with regulators and published by the issuer.

Where to find official documents:

• Direxion product page and fund prospectus (search issuer site for KORU)
• Regulatory filings and SEC submissions contain formal disclosures and historical reporting
• Daily holdings CSV files published by the issuer include up-to-date positions and collateral disclosures

Regulatory reminders: Always consult the prospectus and regulatory filings before trading. Verify the fund’s registration details, risk disclosures, fees, and official contact points.

See also

• MSCI Korea 25/50 Index (benchmark for koru stock)
• EWY (non‑leveraged South Korea ETF) — compare non-leveraged alternatives to koru stock
• Other Direxion leveraged ETFs — for understanding the broader family of leveraged products
• Leveraged ETF mechanics — primer on daily reset, compounding, and volatility effects

References

This article is based on issuer documentation and major financial data providers. Key sources to consult for current details include:

• Direxion product page and official fund prospectus and fact sheet (issuer documentation)
• Market quote and data providers (example sources: Yahoo Finance, Nasdaq quote pages, Investing.com, StockAnalysis, Zacks) for live price and historical data
• Daily holdings and regulatory filings published by the issuer

As of 2026-01-20, according to Direxion product materials, expense ratios, AUM, and holdings may have changed. Always verify live figures with the issuer or a major market data provider before making trading decisions.

External links

Below are names of official pages to consult for live quotes and documents. Search for these resources on the issuer or market data websites (no direct URLs provided here):

• Direxion official KORU product page
• Direxion KORU prospectus (PDF) and fact sheet
• NYSE Arca quote page for KORU
• Major market data quote pages (search providers such as Yahoo Finance, Nasdaq, StockAnalysis)

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Key takeaway: koru stock (KORU) is a 3x daily leveraged ETF that gives amplified exposure to the MSCI Korea 25/50 Index. It is designed for short-term, active trading and carries elevated risk from leverage, compounding, and derivatives usage. Consult Direxion’s prospectus and live market data for current metrics before trading.

Explore more educational content on ETF mechanics and check the fund’s official pages for holdings, NAV history, and regulatory filings. For traders focused on digital asset workflows or custody, consider Bitget and Bitget Wallet as part of your broader toolkit.

To learn more about leveraged ETF structure or to access secure trading and wallet services, explore Bitget’s resources and the issuer’s official materials.