Welcome back, degens and rocket-riders, to another weekly recap where we dive headfirst into the beautiful chaos of single-stock ETFs. The theme this week was targeted strikes and high-conviction bets, as traders poured a net $818 million into these high-octane products over the last five days. The action pushed the category’s total assets under management to a staggering $36 billion. While the overall market chopped around, traders in this space weren’t sitting on their hands—they were hitting the launch button on very specific names, leading to some truly explosive moves. Let’s break down the madness.
Performance: A Tale of Extremes
This week was a classic example of why we love this corner of the market: massive wins and gut-wrenching drops, often on the same underlying stock. Here’s who got the glory and who got wrecked.
- Levered ETFs: The biggest winner was the Defiance Daily Target 2X Long RIOT ETF (RIOX), which absolutely blasted off, soaring 33.30% for the week. On the flip side, holders of the Defiance Daily Target 2X Long SOUN ETF (SOUX) felt the pain, as it cratered -36.80%. Ouch.
- Inverse ETFs: Traders betting against the hype in Palantir were rewarded handsomely. The Defiance Daily Target 2x Short PLTR ETF (PLTZ) was the week’s big winner, climbing 21.27%. Meanwhile, those shorting Tesla’s modest rally got squeezed, with the Tradr 2X Short TSLA Daily ETF (TSLZ) dropping -6.80%.
- Synthetic Income ETFs: Proving you can still get paid while things are popping off, the TSLR ETF, which sells calls on Tesla, delivered a tidy 5.12% gain. The ride wasn’t as smooth for everyone, as the Roundhill HOOD WeeklyPay ETF (HOOY), which tracks Robinhood, dipped -2.35%.
- Underlying Drivers: The volatility was fueled by some wild swings in the underlying stocks. The main hero this week was Riot Platforms (RIOT), providing the fuel for RIOX’s moon mission. The villain of our story was SoundHound AI (SOUN), whose brutal drop punished the bulls. But the biggest battleground was clearly Palantir (PLTR), which saw heavy action on both the long and short side, making it the epicenter of this week’s trading turmoil.
Flows: Following the Money
Money never sleeps, and this week it was sprinting toward levered and income strategies, while pulling back from the short side. Traders were clearly looking to amplify gains or generate yield, not bet on a market crash. The total $818 million in net inflows shows the conviction is still strong.
Flows by Category
- Levered ETFs:
- AUM: $20.86 billion
- 5-Day Flow: +$734 million
- 30-Day Flow: -$73 million
- YTD Flow: +$3.96 billion
- Inverse ETFs:
- AUM: $1.36 billion
- 5-Day Flow: -$178 million
- 30-Day Flow: -$122 million
- YTD Flow: +$1.18 billion
- Synthetic Income ETFs:
- AUM: $13.73 billion
- 5-Day Flow: +$261 million
- 30-Day Flow: +$2.06 billion
- YTD Flow: +$11.45 billion
Issuers: The Arms Race
The battle for your speculative capital is heating up, with a few key players dominating the flow leaderboard this week.
- Weekly Winners: Direxion was the undisputed champ, pulling in a massive $209 million in fresh cash. GraniteShares also had a stellar week, attracting $185 million in new assets.
- Weekly Losers: It was a tougher week for Tradr, which saw the largest net outflows, waving goodbye to $22 million.
- The Titans: The top of the mountain remains unchanged. YieldMax continues its reign as the AUM king with $12.82 billion, followed by Direxion at $8.95 billion and GraniteShares at $7.54 billion.
- The Newcomers: The product pipeline is gushing, with a whopping 71 new single-stock ETFs launching in the last 3 months alone. The most prolific issuer on the block has been Leverage Shares, which is rapidly expanding its menu of offerings.
A Word From Our Lawyers (The Fun Version)
Alright, listen up. This is the part where we remind you that this is all for fun and games.
- Not Financial Advice: This commentary is for informational and entertainment purposes only. It is absolutely, positively not financial advice. We’re just calling the horse race, not telling you which one to bet on.
- High-Risk Products: Single-stock ETFs are the financial equivalent of strapping yourself to a rocket built by the lowest bidder. They are designed for short-term, speculative bets and are wildly unsuitable for long-term investing or for your grandma’s retirement account. Seriously, don’t tell grandma about these.
- The Dangers of Leverage and Daily Resets: Remember, leverage is a double-edged sword that can chop you to bits. It magnifies gains AND losses. The daily reset feature means that over time, your returns can look nothing like the underlying stock’s performance. You could get completely wiped out even if you’re eventually right on the direction.
- Do Your Own Research: We urge you to do your own homework. Past performance is just that—in the past. And no, rocket emojis in a Reddit thread do not count as due diligence.
- Consult a Professional: Please, for the love of all that is holy, talk to a qualified financial advisor who can look you in the eye and tell you if you’re crazy enough to trade these things.
- You Can Lose Everything: Let’s be crystal clear: you can lose all of your money, and possibly your shirt, very, very quickly. Trade smart, trade safe, and may the odds be ever in your favor.
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.
