Weekly Channel Summary
The Leveraged & Inverse (Non-Traditional) ETF channel currently comprises 642 ETFs across 27 distinct issuers, managing a total of $212.07 billion in Assets Under Management (AUM). Over the past 5 days, the channel experienced net outflows of ($623M). Zooming out, the broader trend remains negative with Year-to-Date (YTD) flows sitting at ($5,625M) and 1-Year flows showing significant redemptions of ($14,943M).
This Week’s Performance Leaders and Laggards
This week demonstrated stark divergence across the Leveraged & Inverse universe. Sector and commodity funds showed strength, with Commodity: Focused – Energy leading the underlying categories at +3.13%, followed by Thematic – Midstream & MLPs (+2.73%) and Sector – Energy (+2.40%). Conversely, digital assets took a brutal hit, dragging the Cryptocurrency – Bitcoin category down by -18.71%. The dispersion was highly concentrated; ETHD (ProShares UltraShort Ether ETF) surged to the top of the leaderboard with a massive +55.46% weekly return, capitalizing on downside momentum in crypto. On the opposite end, CRDX (Volatility Shares 2x Cardano ETF) and KORU (Direxion Daily MSCI South Korea Bull 3X ETF) bore the brunt of the selling pressure, plunging -54.81% and -44.88% respectively.
Top & Bottom 5 ETFs by Weekly Performance
| Ticker | Fund Name | WTD Performance |
|---|---|---|
| Top Performers | ||
| ETHD | ProShares UltraShort Ether ETF | +55.46% |
| BTCZ | T-Rex 2X Inverse Bitcoin Daily Target ETF | +45.14% |
| SBIT | ProShares UltraShort Bitcoin ETF | +44.97% |
| GDXD | MicroSectors Gold Miners -3X Inverse Leveraged ETNs | +42.22% |
| JDST | Direxion Daily Junior Gold Miners Index Bear 2X ETF | +35.50% |
| Bottom Performers | ||
| CRDX | Volatility Shares 2x Cardano ETF | -54.81% |
| KORU | Direxion Daily MSCI South Korea Bull 3X ETF | -44.88% |
| AVAZ | 2x Avalanche ETF | -44.36% |
| TXXS | 21 Shares 2x Long Sui ETF | -42.63% |
| SUIL | Volatility Shares 2x Sui ETF | -41.43% |
Analyzing the Weekly Flows
While overall channel flows were negative at ($623M), there was a pronounced shift towards concentrated exposures. The Leverage | Inverse – Single Stock category acted as a massive magnet for capital, absorbing $1,279M in new inflows and pushing its AUM to $48.08B. The Leverage | Inverse – Crypto space also saw modest positive flows of $33M. These specific bets came at the expense of broader strategies; the Leverage | Inverse – Equity category experienced the largest drawdown, shedding ($1,533M) over the past 5 days.
Category Flows Summary
| Category | Fund Count | AUM | 5 Day | 30 Day | 90 Day | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| Leverage | Inverse – Single Stock | 336 | $48,083M | $1,279M | $3,857M | $4,114M | $7,705M | $13,205M |
| Leverage | Inverse – Crypto | 26 | $2,911M | $33M | $174M | $559M | $1,273M | $4,841M |
| Leverage | Inverse – Fixed Income | 15 | $3,423M | ($85M) | ($174M) | ($140M) | ($1,098M) | ($2,389M) |
| Leverage | Inverse – Commodity | 19 | $5,002M | ($317M) | $3,714M | $4,539M | $6,111M | $7,130M |
| Leverage | Inverse – Equity | 194 | $152,653M | ($1,533M) | ($4,848M) | ($13,970M) | ($19,616M) | ($37,731M) |
| Grand Total | 590 | $212,071M | ($623M) | $2,723M | ($4,898M) | ($5,625M) | ($14,943M) |
Top & Bottom 5 ETFs by 5-Day Flow
Investors expressed a heavily bearish sentiment on semiconductors, allocating $426M to SOXS (Direxion Daily Semiconductor Bear 3X ETF) while withdrawing an immense ($1,491M) from SOXL (Direxion Daily Semiconductor Bull 3X ETF). The short oil trade also faced heavy unwinding, with SCO seeing ($297M) in net outflows.
| Ticker | Fund Name | 5-Day Flow |
|---|---|---|
| Inflows | ||
| SOXS | Direxion Daily Semiconductor Bear 3X ETF | $426M |
| SH | ProShares Short S&P500 | $99M |
| AGQ | ProShares Ultra Silver | $83M |
| SSO | ProShares Ultra S&P 500 | $73M |
| SPDN | Direxion Daily S&P 500 Bear 1X ETF | $35M |
| Outflows | ||
| SOXL | Direxion Daily Semiconductor Bull 3X ETF | ($1,491M) |
| SCO | ProShares UltraShort Bloomberg Crude Oil | ($297M) |
| SQQQ | ProShares UltraPro Short QQQ | ($197M) |
| TECL | Direxion Daily Technology Bull 3X ETF | ($105M) |
| TMF | Direxion Daily 20+ Year Treasury Bull 3X ETF | ($89M) |
Issuer League Table Update
The heavyweights, ProShares and Direxion, maintain firm control over market share, commanding 42.31% and 37.52% of the channel’s AUM respectively. However, the week favored agile competitors: Defiance gathered the most weekly inflows across the channel (+$543M), followed by GraniteShares (+$431M). Driven largely by the semiconductor flight, Direxion suffered the most significant redemptions, posting a ($1,157M) net outflow for the week.
Top 5 Issuers by AUM
| Brand | Fund Count | AUM | AUM Market Share |
|---|---|---|---|
| ProShares | 110 | $89.76B | 42.31% |
| Direxion | 122 | $79.58B | 37.52% |
| GraniteShares | 39 | $13.30B | 6.27% |
| REX Microsectors | 21 | $9.29B | 4.38% |
| Tradr | 69 | $8.13B | 3.83% |
Top & Bottom 3 Issuers by 5-Day Flow
| Brand | 5-Day Flow |
|---|---|
| Inflows | |
| Defiance | $543M |
| GraniteShares | $431M |
| Leverage Shares | $182M |
| Outflows | |
| Direxion | ($1,157M) |
| ProShares | ($529M) |
| Tradr | ($234M) |
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.
