US ETF Deleveraging Wipes $100 Billion in Notional Exposure
The notional value of the 200 largest US ETFs has declined by $100 billion, or 20%, over the past month to around $400 billion, the lowest since May. This metric reflects total market exposure including leverage effects.
The notional value of the 200 largest US ETFs has fallen $100 billion over the last month, a 20% drop that takes total exposure to roughly $400 billion—the lowest level since May. This measure captures the total market exposure these funds provide, factoring in their embedded leverage. For instance, a $100 billion leveraged ETF with 2x leverage represents $200 billion in notional exposure.
The decline follows a $200 billion surge (+67%) from the March 30 market bottom. By comparison, the notional value had dropped $130 billion (−37%) from its November 2024 peak to the April 2025 trough. Despite the recent pullback, leveraged ETF exposure remains more than double the peak seen during the 2021 meme stock frenzy.
Leverage is amplifying volatility across markets.
Source: The Kobeissi Letter