Weekly Channel Summary
The Leveraged & Inverse (Non-Traditional) ETF channel, comprising 642 ETFs across 28 distinct issuers, ended the week with a total Assets Under Management (AUM) of $181 billion. Short-term investor appetite returned to the channel, driving $2.26B in 5-Day net inflows. However, the broader trend remains negative, with the channel posting -$3.33B in Year-To-Date flows and -$11.76B over the trailing 1-Year period.
This Week’s Performance Leaders and Laggards
Performance across the Leveraged & Inverse landscape highlighted intense divergence this week, driven by highly volatile thematic and digital asset segments vastly outperforming core defensive bets. The Digital Asset: Cryptocurrency – Bitcoin category led the channel with a 6.67% WTD return, closely followed by Equity: Thematic – Disruptive Tech at 6.22%. Conversely, commodity and select industrial thematic strategies struggled, with Commodity: Focused – Energy lagging significantly at -4.06%, and Equity: Thematic – Industrial Revolution dropping -2.79%. The action was heavily concentrated in high-beta tech and crypto vehicles, leaving traditional value sectors relatively muted.
Top & Bottom 5 ETFs by Weekly Performance
At the individual fund level, the SPCL (Defiance Pure Space Daily 2X Strategy ETF) was the single best-performing ETF, surging an impressive 52.74%. On the downside, semiconductor bears and drone-themed funds took the heaviest hits, with the SOXS (Direxion Daily Semiconductor Bear 3X ETF) and DRNL (Defiance 2X Daily Long Pure Drone & Aerial Automation ETF) ranking as the worst performers, plummeting -31.19% and -16.83% respectively.
| Ticker | Fund Name | WTD Performance |
|---|---|---|
| Top Performers | ||
| SPCL | Defiance Pure Space Daily 2X Strategy ETF | 52.74% |
| KORU | Direxion Daily MSCI South Korea Bull 3X ETF | 36.62% |
| SOXL | Direxion Daily Semiconductor Bull 3X ETF | 29.95% |
| RETL | Direxion Daily Retail Bull 3X ETF | 18.79% |
| PILL | Direxion Daily Pharmaceutical & Medical Bull 3X ETF | 17.28% |
| Bottom Performers | ||
| SOXS | Direxion Daily Semiconductor Bear 3X ETF | -31.19% |
| DRNL | Defiance 2X Daily Long Pure Drone & Aerial Automation ETF | -16.83% |
| JETD | MAX Airlines -3X Inverse Leveraged ETNs | -16.74% |
| MSOX | AdvisorShares MSOS Daily Leveraged ETF | -15.60% |
| EDZ | Direxion Daily MSCI Emerging Markets Bear 3X ETF | -15.02% |
Analyzing the Weekly Flows
Overall, the channel gathered robust capital, ending the week with total net inflows of over $2.2 billion. Leverage | Inverse – Equity dominated the inflows, reeling in $2,595M against its sizable $131.78B AUM base. The Leverage | Inverse – Crypto segment also posted a positive net flow of $39M. Conversely, the Leverage | Inverse – Single Stock category suffered the steepest redemptions, bleeding -$285M over the five-day period.
Category Flows Summary
| Category | Fund Count | AUM | 5 Day | 30 Day | 90 Day | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| Leverage | Inverse – Equity | 193 | $131,780M | $2,595M | -$648M | -$12,125M | -$17,020M | -$33,724M |
| Leverage | Inverse – Crypto | 26 | $2,735M | $39M | $254M | $579M | $1,312M | $4,929M |
| Leverage | Inverse – Commodity | 19 | $4,819M | -$40M | $3,595M | $4,304M | $6,071M | $7,091M |
| Leverage | Inverse – Fixed Income | 15 | $3,322M | -$70M | -$174M | -$268M | -$1,168M | -$2,405M |
| Leverage | Inverse – Single Stock | 334 | $38,285M | -$285M | $2,845M | $4,251M | $7,434M | $12,314M |
Top & Bottom 5 ETFs by 5-Day Flow
The SOXL (Direxion Daily Semiconductor Bull 3X ETF) commanded the most new money this week, gathering an astounding $3,091M. In stark contrast, massive structural outflows hit the top two laggards; the SSO (ProShares Ultra S&P 500) shed -$574M, while the SOXS (Direxion Daily Semiconductor Bear 3X ETF) saw -$217M head for the exits.
| Ticker | Fund Name | 5-Day Flow |
|---|---|---|
| Inflows | ||
| SOXL | Direxion Daily Semiconductor Bull 3X ETF | $3,091M |
| KORU | Direxion Daily MSCI South Korea Bull 3X ETF | $435M |
| TQQQ | ProShares UltraPro QQQ | $302M |
| PSQ | ProShares Short QQQ | $87M |
| BITX | 2x Bitcoin Strategy ETF | $58M |
| Outflows | ||
| SSO | ProShares Ultra S&P 500 | -$574M |
| SOXS | Direxion Daily Semiconductor Bear 3X ETF | -$217M |
| SQQQ | ProShares UltraPro Short QQQ | -$152M |
| FAS | Direxion Daily Financial Bull 3X ETF | -$96M |
| TMF | Direxion Daily 20+ Year Treasury Bull 3X ETF | -$73M |
Issuer League Table Update
The balance of power in the Leverage | Inverse space remains highly concentrated among the top two issuers: ProShares (44.66% market share) and Direxion (36.53% market share). This week, Direxion successfully captured the vast majority of investor flow, taking in a staggering $2,886M. Conversely, despite holding the largest AUM footprint, ProShares suffered the deepest net outflows across all issuers, shedding -$527M.
Top 5 Issuers by AUM
| Brand | Fund Count | AUM | AUM Market Share |
|---|---|---|---|
| ProShares | 110 | $80.83B | 44.66% |
| Direxion | 122 | $66.12B | 36.53% |
| GraniteShares | 39 | $9.80B | 5.42% |
| REX Microsectors | 21 | $7.10B | 3.92% |
| Tradr | 65 | $6.26B | 3.46% |
Top & Bottom 3 Issuers by 5-Day Flow
| Brand | 5-Day Flow |
|---|---|
| Inflows | |
| Direxion | $2,886M |
| Defiance | $220M |
| Volatility Shares | $104M |
| Outflows | |
| ProShares | -$527M |
| GraniteShares | -$450M |
| T-Rex | -$47M |
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.
