US leveraged ETF trading volume hits record $90bn
Trading volume in US-listed leveraged and inverse ETFs surged to $90 billion on Tuesday, an all-time high. Activity has more than tripled over the past year, signaling elevated risk appetite.
The total notional trading volume across US-listed leveraged and inverse ETFs reached $90 billion on Tuesday, the highest ever recorded. This figure has more than tripled over the last 12 months and represented roughly 50% of all assets under management in the entire leveraged and inverse ETF universe.
The 3x leveraged short semiconductor ETF, $SOXS, traded over 1.3 billion shares in a single session—the third-largest single-day volume for any US-listed ETF in the last 20 years. Only the 2x leveraged long Nasdaq 100 ETF ($QLD) and the 2x leveraged long S&P 500 ETF ($SSO) have seen larger volumes, both during the 2008 Financial Crisis.
The data points to an unprecedented level of risk appetite among traders, with leveraged and inverse ETFs seeing explosive growth in activity.
Source: The Kobeissi Letter