Weekly Channel Summary
The Leverage & Inverse channel finished the week with $180.96 billion in assets under management across 796 ETFs from 27 issuers. The segment attracted $584 million in net inflows over the past five days, contributing to a year-to-date total of $6.6 billion. Over the last twelve months, these tactical trading tools have gathered a cumulative $9.5 billion in new assets.
This Week’s Performance Leaders and Laggards
All Leverage & Inverse categories posted negative returns for the week amid broad market declines. Crypto-focused products were the most resilient, falling only -0.57%, while Commodity-based funds suffered the most with a -4.03% drop. Despite a weekly loss of -2.73%, Single Stock ETFs remain the standout performers year-to-date, boasting a remarkable 99.41% gain.
Top & Bottom 5 ETFs by Weekly Performance
Bearish sentiment in the biotechnology sector delivered strong returns for inverse funds this week. The Direxion Daily S&P Biotech Bear 3X ETF (LABD) surged 15.19%, making it the top-performing fund in the channel. Conversely, its bullish counterpart, the Direxion Daily S&P Biotech Bull 3X ETF (LABU), was one of the worst performers, declining by -13.92%. The Direxion Daily Pharmaceutical & Medical Bull 3X ETF (PILL) experienced the steepest loss, falling -14.01%.
| Ticker | Fund Name | WTD Performance |
|---|---|---|
| Top Performers | ||
| LABD | Direxion Daily S&P Biotech Bear 3X ETF | 15.19% |
| YANG | Direxion Daily FTSE China Bear 3X ETF | 12.64% |
| FLYD | MicroSectors Travel -3x Inverse Leveraged ETN | 11.21% |
| BIS | ProShares UltraShort Nasdaq Biotechnology | 9.06% |
| UCO | ProShares Ultra Bloomberg Crude Oil | 9.01% |
| Bottom Performers | ||
| PILL | Direxion Daily Pharmaceutical & Medical Bull 3X ETF | -14.01% |
| LABU | Direxion Daily S&P Biotech Bull 3X ETF | -13.92% |
| NAIL | Direxion Daily Homebuilders & Supplies Bull 3X ETF | -13.85% |
| UPAL | ProShares Ultra Palladium K-1 Free ETF | -13.58% |
| TBXU | Direxion Daily Biotech Top 5 Bull 2X ETF | -13.57% |
Analyzing the Weekly Flows
The Leverage & Inverse channel saw net inflows of $584 million, with traders directing capital towards broad market and commodity positions. Equity-focused funds led the way, attracting $448 million, followed closely by Commodity funds which pulled in $323 million. In contrast, the popular Single Stock category experienced significant redemptions, shedding -$294 million for the week.
Category Flows Summary
| Category | Fund Count | AUM | 5 Day | 30 Day | 90 Day | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| Leverage | Inverse – Equity | 237 | $135.02B | $448M | $733M | $7,428M | -$9,811M | -$16,013M |
| Leverage | Inverse – Commodity | 22 | $4.92B | $323M | $626M | $273M | $6,345M | $7,069M |
| Leverage | Inverse – Fixed Income | 19 | $2.99B | $84M | $99M | -$51M | -$1,198M | -$2,138M |
| Leverage | Inverse – Crypto | 28 | $4.00B | $23M | -$4M | $38M | $1,355M | $4,299M |
| Leverage | Inverse – Single Stock | 489 | $33.97B | -$294M | -$2,161M | $2,536M | $9,902M | $16,235M |
Top & Bottom 5 ETFs by 5-Day Flow
Traders made a significant bearish bet on energy prices, pushing $263 million into the ProShares UltraShort Bloomberg Crude Oil (SCO), making it the week’s top asset gatherer. On the other side of the ledger, investors pulled a substantial $317 million from the Direxion Daily Semiconductor Bull 3X ETF (SOXL), marking the largest outflow. The Direxion Daily MSCI South Korea Bull 3X ETF (KORU) also saw considerable redemptions, with outflows totaling -$181 million.
| Ticker | Fund Name | 5-Day Flow |
|---|---|---|
| Inflows | ||
| SCO | ProShares UltraShort Bloomberg Crude Oil | $263M |
| SOXS | Direxion Daily Semiconductor Bear 3X ETF | $213M |
| TQQQ | ProShares UltraPro QQQ | $161M |
| PSQ | ProShares Short QQQ | $105M |
| SNDQ | Tradr 2X Short SNDK Daily ETF | $97M |
| Outflows | ||
| SOXL | Direxion Daily Semiconductor Bull 3X ETF | -$317M |
| KORU | Direxion Daily MSCI South Korea Bull 3X ETF | -$181M |
| SNXX | Tradr 2X Long SNDK Daily ETF | -$172M |
| METU | Direxion Daily META Bull 2X ETF | -$86M |
| MUU | Direxion Daily MU Bull 2X ETF | -$79M |
Note: the following fund(s) were excluded from the flow totals above because the weekly flow exceeds 75% of the fund’s AUM and may be the result of a custom rebalance: SKDD ($48M).
Issuer League Table Update
The issuer landscape remains dominated by ProShares and Direxion, which command 46.55% and 34.05% of the channel’s market share, respectively. ProShares had a strong week, leading all issuers with $757 million in net inflows. Meanwhile, Tradr experienced the largest net outflows among issuers, with investors withdrawing -$186 million from its funds.
Top 5 Issuers by AUM
| Brand | Fund Count | AUM | AUM Market Share |
|---|---|---|---|
| ProShares | 113 | $84.24B | 46.55% |
| Direxion | 125 | $61.62B | 34.05% |
| REX Microsectors | 35 | $8.87B | 4.90% |
| GraniteShares | 44 | $8.85B | 4.89% |
| Tradr | 83 | $5.07B | 2.80% |
Top & Bottom 3 Issuers by 5-Day Flow
| Brand | 5-Day Flow |
|---|---|
| Inflows | |
| ProShares | $757M |
| Defiance | $127M |
| T-Rex | $81M |
| Outflows | |
| Tradr | -$186M |
| GraniteShares | -$175M |
| Leverage Shares | -$48M |
For a deeper dive into these trends, access our FREE, in-depth Leverage & Inverse ETF reports in the right side panel of this page.
Disclosures
This material is for informational purposes only and should not be considered investment advice. All investments, including ETFs, involve risk, including the possible loss of principal. Investors should consider their investment objectives, risks, charges, and expenses carefully before investing.
This analysis was developed by the team at ETF Action. We leverage advanced AI tools to assist in the drafting and refinement of our content, based on our expert prompts, direction, and final review.
