Weekly Channel Summary
The Leverage | Inverse ETF channel currently manages approximately $138.1 billion in assets across 556 products and 24 brands. This week saw robust activity with $2.8 billion in net inflows, a significant reversal from the year-to-date trend which remains in redemption territory at ($2.65 billion). Over the past year, the channel has managed to maintain a positive trajectory with $544 million in total net flows. The competitive landscape continues to be top-heavy, with the two largest issuers commanding over 83% of the total market share, even as innovation remains high with 81 new launches in the past quarter.
This Week’s Performance Leaders and Laggards
Performance across the channel was defined by extreme volatility in thematic and digital asset categories. Equity: Sector – Consumer Staples was the primary category leader with a 5.35% return, followed by Industrial (4.69%) and Materials (4.54%) sectors. In contrast, the Digital Asset: Cryptocurrency – Bitcoin category plummeted -15.94% for the week, dragging down long-leveraged crypto funds significantly. Thematic – FinTech also struggled, posting an -8.12% decline. This dispersion highlights a significant risk-off move in high-growth tech and crypto, while traditional defensive sectors showed relative strength.
Top & Bottom 5 ETFs by Weekly Performance
The top individual performer this week was the T-Rex 2X Inverse Ether Daily Target ETF (ETQ), which surged 45.73%, capitalizing on the sharp downturn in the crypto markets. It was followed closely by the ProShares UltraShort Ether ETF (ETHD). On the downside, the ProShares Ultra Solana ETF (SLON) and 2x Solana ETF (SOLT) were the week’s laggards, both falling nearly -49%.
| Ticker | Fund Name | WTD Performance |
|---|---|---|
| Top Performers | ||
| ETQ | T-Rex 2X Inverse Ether Daily Target ETF | 45.73% |
| ETHD | ProShares UltraShort Ether ETF | 45.71% |
| KOLD | ProShares UltraShort Bloomberg Natural Gas | 33.86% |
| SBIT | ProShares UltraShort Bitcoin ETF | 29.19% |
| NRGU | MicroSectors U.S. Big Oil 3 Leveraged ETN | 18.06% |
| Bottom Performers | ||
| SLON | ProShares Ultra Solana ETF | -48.93% |
| SOLT | 2x Solana ETF | -48.88% |
| SOLX | T-REX 2X Long SOL Daily Target ETF | -48.23% |
| BOIL | ProShares Ultra Bloomberg Natural Gas | -45.73% |
| ETHT | ProShares Ultra Ether ETF | -44.87% |
Analyzing the Weekly Flows
The channel attracted a total net flow of $2.8 billion this week. The Leverage | Inverse – Equity category led the charge with $1.7 billion in inflows, followed closely by Single Stock products which added $1.47 billion. Crypto-linked funds saw more modest interest at $185 million. On the flip side, the Commodity category experienced the largest withdrawals, losing ($349 million) over the past 5 days, while Fixed Income products saw outflows of ($208 million).
Category Flows Summary
| Category | Fund Count | AUM | 5 Day | YTD | 1 Year |
|---|---|---|---|---|---|
| Leverage | Inverse – Equity | 191 | $101.4B | $1,704M | ($5,937M) | ($14,821M) |
| Leverage | Inverse – Single Stock | 300 | $23.5B | $1,471M | $1,777M | $10,126M |
| Leverage | Inverse – Crypto | 21 | $2.7B | $185M | $353M | $4,319M |
| Leverage | Inverse – Fixed Income | 15 | $4.1B | ($208M) | ($614M) | ($2,031M) |
| Leverage | Inverse – Commodity | 16 | $5.8B | ($349M) | $1,769M | $2,951M |
Top & Bottom 5 ETFs by 5-Day Flow
The Direxion Daily Semiconductor Bull 3x Shares (SOXL) dominated inflows with a massive $1.6 billion added, as investors bet on a bounce in chips. Conversely, the ProShares UltraShort Silver (ZSL) and ProShares UltraPro Short QQQ (SQQQ) saw the heaviest outflows at ($347 million) and ($248 million) respectively.
| Ticker | Fund Name | 5-Day Flow |
|---|---|---|
| Inflows | ||
| SOXL | Direxion Daily Semiconductor Bull 3x Shares | $1,604M |
| TQQQ | ProShares UltraPro QQQ | $767M |
| PSQ | ProShares Short QQQ | $226M |
| AGQ | ProShares Ultra Silver | $170M |
| SPXL | Direxion Daily S&P 500 Bull 3x Shares | $134M |
| Outflows | ||
| ZSL | ProShares UltraShort Silver | ($347M) |
| SQQQ | ProShares UltraPro Short QQQ | ($248M) |
| KOLD | ProShares UltraShort Bloomberg Natural Gas | ($228M) |
| TMF | Direxion Daily 20+ Year Treasury Bull 3X Shares | ($203M) |
| SOXS | Direxion Daily Semiconductor Bear 3x Shares | ($172M) |
Issuer League Table Update
ProShares and Direxion continue to maintain a dominant duopoly in the Leverage | Inverse space, together controlling over 83% of total assets. Direxion was the primary gatherer this week, securing $1.64 billion in net new money, largely driven by its suite of sector bull funds. Meanwhile, REX Microsectors saw notable outflow activity as investors shifted positioning among specialized products.
Top 5 Issuers by AUM
| Brand | Fund Count | AUM | Market Share |
|---|---|---|---|
| ProShares | 107 | $66.30B | 48.01% |
| Direxion | 120 | $49.29B | 35.70% |
| GraniteShares | 39 | $6.36B | 4.60% |
| REX Microsectors | 19 | $6.25B | 4.53% |
| Tradr | 62 | $2.21B | 1.60% |
Top & Bottom 3 Issuers by 5-Day Flow
| Brand | 5-Day Flow |
|---|---|
| Inflows | |
| Direxion | $1,639M |
| Tradr | $557M |
| GraniteShares | $317M |
| Outflows | |
| REX Microsectors | ($219M) |
| Roundhill | ($1M) |
| Simplify | ($1M) |
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.
