Dispersion on Display: Disruptive Tech Leads Amid $440M Channel Outflows

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Weekly Channel Summary

The Leveraged & Inverse (Non-Traditional) ETF channel currently oversees a Total AUM of $201.37 billion, spread across 589 distinct ETFs and managed by 28 issuers. Overall, the channel experienced net outflows over the short and long term, posting a 5-Day Flow of -$440M. Looking further back, the channel recorded a YTD Flow of -$4.06B and a 1-Year Flow of -$12.16B.

This Week’s Performance Leaders and Laggards

This week showcased significant divergence in returns across the leveraged and inverse landscape. The thematic action was heavily concentrated in high-growth, volatile sectors, with Disruptive Tech leading all categories by delivering a 9.23% WTD return. Conversely, traditional and resource-based sectors lagged significantly, weighed down by Energy, which posted the channel’s lowest category return at -6.61% WTD. Notably, while broad core equities exhibited mild gains, extreme dispersion was primarily found in specialized tech, crypto, and energy trackers.

Top & Bottom 5 ETFs by Weekly Performance

The single best-performing product this week was the STLU (Volatility Shares 2x Stellar ETF), rocketing higher by an impressive 53.59%. On the other end of the spectrum, biotech and semiconductor bears suffered the most severe drawdowns; the two worst performers were LABD (Direxion Daily S&P Biotech Bear 3X ETF) down -46.35%, and SOXS (Direxion Daily Semiconductor Bear 3X ETF) retreating -24.21%.

Ticker Fund Name WTD Performance
Top Performers
STLU Volatility Shares 2x Stellar ETF 53.59%
KORU Direxion Daily MSCI South Korea Bull 3X ETF 32.56%
NRGD MicroSectors U.S. Big Oil -3x Inverse Leveraged ETN 23.06%
OILD MicroSectors Oil & Gas Exp. & Prod. -3x Inverse Leveraged ETN 22.61%
WTID MicroSectors Energy 3X Inverse Leveraged ETNs 21.71%
Bottom Performers
LABD Direxion Daily S&P Biotech Bear 3X ETF -46.35%
SOXS Direxion Daily Semiconductor Bear 3X ETF -24.21%
NRGU MicroSectors U.S. Big Oil 3x Leveraged ETN -20.26%
OILU MicroSectors Oil & Gas Exp. & Prod. 3x Leveraged ETN -19.87%
WTIU MicroSectors Energy 3X Leveraged ETNs -19.30%

Analyzing the Weekly Flows

Channel-wide capital flows recorded a net decline of -$440M this week. The brightest spot belonged to the Single Stock category, which gathered the most inflows at +$2,142M (supported by an AUM base of $45.23B). Additionally, strong capital formation was observed in the Levered 2x implementation segment (+$2,738M). On the downside, the traditional Equity category experienced the largest capital flight, surrendering -$2,265M to outflows.

Category Flows Summary

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Leverage | Inverse – Single Stock 333 $45,232M $2,142M $3,888M $6,078M $9,533M $14,597M
Leverage | Inverse – Crypto 28 $2,970M ($3M) $251M $499M $1,314M $4,806M
Leverage | Inverse – Fixed Income 15 $3,321M ($112M) ($372M) ($472M) ($1,259M) ($2,429M)
Leverage | Inverse – Commodity 21 $4,963M ($203M) $3,355M $3,758M $5,869M $6,772M
Leverage | Inverse – Equity 192 $144,884M ($2,265M) ($3,265M) ($14,609M) ($19,519M) ($35,910M)

Top & Bottom 5 ETFs by 5-Day Flow

At the individual product level, SSO claimed the top spot for asset gathering by taking in a robust $383M. Meanwhile, the most severe redemptions hit international equity and semiconductor plays, with KORU and SOXL shedding -$1,859M and -$1,463M respectively.

Ticker Fund Name 5-Day Flow
Inflows
SSO ProShares Ultra S&P 500 $383M
SPXL Direxion Daily S&P 500 Bull 3X ETF $374M
SOXS Direxion Daily Semiconductor Bear 3X ETF $271M
QLD ProShares Ultra QQQ $179M
SQQQ ProShares UltraPro Short QQQ $154M
Outflows
KORU Direxion Daily MSCI South Korea Bull 3X ETF ($1,859M)
SOXL Direxion Daily Semiconductor Bull 3X ETF ($1,463M)
SCO ProShares UltraShort Bloomberg Crude Oil ($218M)
FAS Direxion Daily Financial Bull 3X ETF ($87M)
PSQ ProShares Short QQQ ($69M)

Issuer League Table Update

The competitive landscape remains top-heavy with ProShares (42.38% market share) and Direxion (37.75% market share) continuing to dominate the channel. Tradr gathered the highest overall net money this week (+$1,558M), but looking strictly at the top two titans, ProShares led with +$475M in weekly inflows, while Direxion sustained the industry’s largest outflows at -$2,572M.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
ProShares 111 $85.69B 42.38%
Direxion 123 $76.33B 37.75%
GraniteShares 38 $11.37B 5.62%
Tradr 67 $9.08B 4.49%
REX Microsectors 21 $7.84B 3.88%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
Tradr $1,558M
ProShares $475M
Leverage Shares $461M
Outflows
Direxion -$2,572M
T-Rex -$11M
Roundhill -$8M

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.