Weekly Channel Summary
The Leveraged & Inverse ETF channel currently stands at $134 billion in Total Assets Under Management (AUM), distributed across 574 distinct ETFs from 24 active issuers. Capital flows continue to demonstrate strong positive momentum over the short term, with the channel gathering $2.85B in net inflows over the past 5 days. This rapid recent accumulation significantly bolsters the Year-To-Date (YTD) flow total to $3.89B, eclipsing the longer 1-Year trailing flow figure of $0.15B and reflecting a notable acceleration in trader positioning.
This Week’s Performance Leaders and Laggards
This week presented a sharp divergence in returns across the Leveraged & Inverse landscape, driven heavily by volatility in specialized thematic sectors rather than broad core equities. The “Precious Metals” thematic category surged to lead the channel with an impressive average return of 10.04%, closely followed by Natural Resources (5.80%) and Latin America (5.09%). Conversely, the Energy sector experienced the steepest drag, declining by an average of -5.30% week-to-date. This dispersion highlights aggressive, targeted positioning by traders attempting to capture concentrated moves in commodities and specific geographical pockets, while rotating away from energy infrastructure and MLPs.
Top & Bottom 5 ETFs by Weekly Performance
The undisputed performance leader this week was the AdvisorShares MSOS Daily Leveraged ETF (MSOX), posting a massive 33.33% gain. On the opposite end of the spectrum, the MicroSectors Gold Miners -3X Inverse Leveraged ETNs (GDXD) cratered by -29.17%, and the Direxion Daily S&P Biotech Bear 3X ETF (LABD) fell by -23.21% as their respective underlying indexes rallied against their bearish mandates.
| Ticker | Fund Name | WTD Performance |
|---|---|---|
| Top Performers | ||
| MSOX | AdvisorShares MSOS Daily Leveraged ETF | 33.33% |
| GDXU | MicroSectors Gold Miners 3X Leveraged ETN | 31.09% |
| LABU | Direxion Daily S&P Biotech Bull 3X ETF | 23.72% |
| JNUG | Direxion Daily Junior Gold Miners Index Bull 2X ETF | 20.92% |
| NUGT | Direxion Daily Gold Miners Index Bull 2X ETF | 20.66% |
| Bottom Performers | ||
| GDXD | MicroSectors Gold Miners -3X Inverse Leveraged ETNs | -29.17% |
| LABD | Direxion Daily S&P Biotech Bear 3X ETF | -23.21% |
| JDST | Direxion Daily Junior Gold Miners Index Bear 2X ETF | -20.43% |
| DUST | Direxion Daily Gold Miners Index Bear 2X ETF | -19.41% |
| SOXS | Direxion Daily Semiconductor Bear 3X ETF | -16.89% |
Analyzing the Weekly Flows
The channel generated significant positive net flows over the last week. The Equity category captured the vast majority of this capital, pulling in $2.35B and fortifying its massive $96.9B AUM base. The Single Stock category also saw strong demand with $312M in new money. On the downside, Fixed Income was the sole category to bleed assets this week, witnessing the largest outflows at -$77M, suggesting a tactical retreat from leveraged bond strategies.
Category Flows Summary
| Category | Fund Count | AUM | 5 Day Flow | 30 Day Flow | 90 Day Flow | YTD Flow | 1 Year Flow |
|---|---|---|---|---|---|---|---|
| Leverage | Inverse – Equity | 194 | $96,904M | $2,356M | $4,359M | ($2,651M) | ($2,972M) | ($14,766M) |
| Leverage | Inverse – Single Stock | 318 | $24,143M | $312M | $835M | $4,841M | $4,287M | $8,379M |
| Leverage | Inverse – Commodity | 16 | $5,846M | $182M | $712M | $2,356M | $2,410M | $3,172M |
| Leverage | Inverse – Crypto | 21 | $3,393M | $51M | $232M | $920M | $897M | $4,980M |
| Leverage | Inverse – Fixed Income | 15 | $3,804M | ($77M) | $207M | ($765M) | ($769M) | ($1,650M) |
Top & Bottom 5 ETFs by 5-Day Flow
The Direxion Daily Semiconductor Bull 3X ETF (SOXL) absolutely dominated inflows, absorbing a massive $1.14B in new capital. On the flip side, semiconductor bears faced significant redemptions, with the Direxion Daily Semiconductor Bear 3X ETF (SOXS) and ProShares UltraShort QQQ (QID) leading outflows at -$107M and -$99M, respectively.
| Ticker | Fund Name | 5-Day Flow |
|---|---|---|
| Top Inflows | ||
| SOXL | Direxion Daily Semiconductor Bull 3X ETF | $1,142M |
| TQQQ | ProShares UltraPro QQQ | $599M |
| SQQQ | ProShares UltraPro Short QQQ | $258M |
| PSQ | ProShares Short QQQ | $210M |
| TECL | Direxion Daily Technology Bull 3X ETF | $149M |
| Top Outflows | ||
| SOXS | Direxion Daily Semiconductor Bear 3X ETF | ($107M) |
| QID | ProShares UltraShort QQQ | ($99M) |
| UCO | ProShares Ultra Bloomberg Crude Oil | ($85M) |
| SH | ProShares Short S&P500 | ($85M) |
| TMF | Direxion Daily 20+ Year Treasury Bull 3X ETF | ($72M) |
Issuer League Table Update
The Leveraged & Inverse space continues to be an oligopoly led by ProShares and Direxion, which collectively control over 82% of the channel’s AUM. ProShares successfully gathered the most net assets this week with $1.3B in positive flows, closely trailed by Direxion. Conversely, AdvisorShares struggled relative to peers, recording the largest absolute weekly outflow of -$10M.
Top 5 Issuers by AUM
| Brand | Fund Count | AUM | AUM Market Share |
|---|---|---|---|
| ProShares | 107 | $62.54B | 46.63% |
| Direxion | 128 | $47.78B | 35.63% |
| GraniteShares | 39 | $6.73B | 5.02% |
| REX Microsectors | 19 | $5.91B | 4.40% |
| Tradr | 63 | $2.95B | 2.20% |
Top & Bottom 3 Issuers by 5-Day Flow
| Brand | 5-Day Flow |
|---|---|
| Top Inflows | |
| ProShares | $1,301M |
| Direxion | $1,172M |
| Tradr | $303M |
| Top Outflows | |
| AdvisorShares | ($10M) |
| Cambria | ($6M) |
| Tuttle Capital | ($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.
