Weekly Channel Summary
The Leverage & Inverse channel encompasses 659 ETFs from 27 issuers, with total assets under management reaching $194.61 billion. This week, the channel attracted significant net inflows of $1.96 billion, a positive turn for tactical traders. However, this recent influx has not yet reversed the longer-term trend, with year-to-date flows remaining negative at -$1.28 billion and one-year redemptions totaling $8.83 billion.
This Week’s Performance Leaders and Laggards
Inverse Fixed Income was the only category to post a positive return this week, gaining 1.25% as interest rate sentiment shifted. In contrast, risk-on segments faced steep declines, with Crypto ETFs leading the downturn at -10.05%. Despite the weekly pullback, Single Stock and Equity ETFs remain the standout performers year-to-date, boasting impressive gains of 297.77% and 122.70%, respectively.
Top & Bottom 5 ETFs by Weekly Performance
Inverse single-stock funds dominated the top performers list, reflecting bearish bets on specific names. Tradr 2X Short CBRS Daily ETF (CBRZ) surged by 71.95%, leading all funds for the week. On the other end of the spectrum, Defiance Daily Target 2X Long VELO ETF (VELL) experienced the largest decline, falling by 70.03%, highlighting the high-conviction nature of trading in this channel.
| Ticker | Fund Name | WTD Performance |
|---|---|---|
| Top Performers | ||
| CBRZ | Tradr 2X Short CBRS Daily ETF | 71.95% |
| RKLZ | Defiance Daily Target 2x Short RKLB ETF | 66.67% |
| MSTZ | T-Rex 2X Inverse MSTR Daily Target ETF | 63.64% |
| SMST | Defiance Daily Target 2x Short MSTR ETF | 63.17% |
| IREZ | Tradr 2X Short IREN Daily ETF | 52.04% |
| Bottom Performers | ||
| VELL | Defiance Daily Target 2X Long VELO ETF | -70.03% |
| CBRX | Tradr 2X Long CBRS Daily ETF | -52.37% |
| CBRG | Leverage Shares 2X Long CBRS Daily ETF | -51.71% |
| NVTX | Tradr 2X Long NVTS Daily ETF | -48.05% |
| STLU | Volatility Shares 2x Stellar ETF | -47.90% |
Analyzing the Weekly Flows
Leverage & Inverse ETFs saw net inflows of nearly $2.0 billion this week, driven almost entirely by a single category. Single Stock ETFs were the clear favorite, attracting a massive $3.14 billion in new assets. This strong demand was partially offset by significant withdrawals from broader market products, as Equity ETFs shed $752 million and Commodity ETFs saw outflows of $364 million.
Category Flows Summary
| Category | Fund Count | AUM | 5 Day | 30 Day | 90 Day | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| Leverage | Inverse – Single Stock | 368 | $45.90B | $3,141M | $6,948M | $9,406M | $13,480M | $19,198M |
| Leverage | Inverse – Crypto | 28 | $2.79B | $122M | $351M | $589M | $1,436M | $4,800M |
| Leverage | Inverse – Fixed Income | 15 | $3.18B | -$192M | -$571M | -$774M | -$1,451M | -$2,601M |
| Leverage | Inverse – Commodity | 22 | $4.32B | -$364M | $3,000M | $3,220M | $5,506M | $6,461M |
| Leverage | Inverse – Equity | 226 | $138.43B | -$752M | -$4,762M | -$15,387M | -$20,252M | -$36,684M |
Top & Bottom 5 ETFs by 5-Day Flow
At the fund level, flows highlighted specific thematic bets, particularly within the technology sector. Direxion Daily MU Bull 2X ETF (MUU) led all funds, gathering $770 million in new assets. In contrast, traders took profits in other popular tech plays, with Direxion Daily Semiconductor Bull 3X ETF (SOXL) experiencing the largest weekly outflow of $994 million. ProShares UltraShort Bloomberg Crude Oil (SCO) also saw significant redemptions, losing $273 million.
| Ticker | Fund Name | 5-Day Flow |
|---|---|---|
| Inflows | ||
| MUU | Direxion Daily MU Bull 2X ETF | $770M |
| SNXX | Tradr 2X Long SNDK Daily ETF | $623M |
| TQQQ | ProShares UltraPro QQQ | $510M |
| SPCH | Leverage Shares 2X Long SPCX Daily ETF | $349M |
| MVLL | GraniteShares 2x Long MRVL Daily ETF | $317M |
| Outflows | ||
| SOXL | Direxion Daily Semiconductor Bull 3X ETF | -$994M |
| SCO | ProShares UltraShort Bloomberg Crude Oil | -$273M |
| TMF | Direxion Daily 20+ Year Treasury Bull 3X ETF | -$158M |
| KORU | Direxion Daily MSCI South Korea Bull 3X ETF | -$109M |
| SH | ProShares Short S&P500 | -$102M |
Issuer League Table Update
The issuer landscape remains concentrated, with ProShares and Direxion commanding a combined market share of nearly 80%, holding $81.71 billion and $73.58 billion in assets, respectively. This week, Tradr led all issuers in asset gathering, attracting $759 million in net inflows. On the other hand, Direxion experienced the largest net outflows among all issuers, with investors pulling $250 million from its funds.
Top 5 Issuers by AUM
| Brand | Fund Count | AUM | AUM Market Share |
|---|---|---|---|
| ProShares | 111 | $81.71B | 41.99% |
| Direxion | 123 | $73.58B | 37.81% |
| GraniteShares | 38 | $11.69B | 6.01% |
| Tradr | 67 | $8.83B | 4.54% |
| REX Microsectors | 21 | $7.17B | 3.68% |
Top & Bottom 3 Issuers by 5-Day Flow
| Brand | 5-Day Flow |
|---|---|
| Inflows | |
| Tradr | $759M |
| GraniteShares | $533M |
| Leverage Shares | $362M |
| Outflows | |
| Direxion | -$250M |
| Cambria | -$2M |
| AdvisorShares | -$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.
