Traders Rotate From Single-Stock Leverage to Broad Equity and Commodity ETFs

Share

Weekly Channel Summary

The Leverage & Inverse channel encompasses 791 ETFs from 27 issuers, with total assets under management standing at $176.61 billion. The channel experienced a net outflow of $336 million for the week, though it remains positive on the year. Year-to-date net flows total $6.07 billion, with the one-year figure slightly higher at $6.25 billion.

This Week’s Performance Leaders and Laggards

Single-stock products delivered the strongest returns this week, with the category jumping 9.09%. This group has more than doubled year-to-date, posting a remarkable 103.35% gain. On the other end of the spectrum, Leverage & Inverse Commodity products were the worst performers, declining by 1.20%, while Fixed Income products also ended the week in negative territory.

Top & Bottom 5 ETFs by Weekly Performance

The week’s top performer was the MicroSectors 3x Long Brazil ETNs (BRZL), which surged 19.36%. Volatility in the memory chip sector was evident as DRAM-focused funds appeared on both the top and bottom performance lists. The worst-performing fund was the T-REX 2X Inverse DRAM Daily Target ETF (RAMZ), which plummeted 14.78% over the period.

Ticker Fund Name WTD Performance
Top Performers
BRZL MicroSectors 3x Long Brazil ETNs 19.36%
RAML Leverage Shares 2X Long Memory Daily ETF 13.29%
RAM Roundhill T-REX 2X Long DRAM Daily Target ETF 13.28%
DRAL Defiance Daily Target 2X Long DRAM ETF 13.15%
KORU Direxion Daily MSCI South Korea Bull 3X ETF 13.00%
Bottom Performers
RAMZ T-REX 2X Inverse DRAM Daily Target ETF -14.78%
WXET Teucrium 2x Daily Wheat ETF -12.74%
BZQ ProShares UltraShort MSCI Brazil Capped -12.25%
FLYU MicroSectors Travel 3x Leveraged ETN -11.40%
TPEI MicroSectors -3x Short Taiwan ETNs -11.09%

Analyzing the Weekly Flows

Despite a net channel outflow of $336 million, investor demand varied significantly across categories. Leverage & Inverse Equity products were the most popular, attracting $364 million in new assets, followed by Commodity products which added $103 million. These inflows were overshadowed by a massive $803 million withdrawal from the Single Stock category, indicating a significant rotation away from individual name bets.

Category Flows Summary

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Leverage | Inverse – Equity 233 $131.92B $364M $158M $9,521M -$10,259M -$18,213M
Leverage | Inverse – Commodity 22 $4.64B $103M $419M -$10M $6,023M $6,729M
Leverage | Inverse – Crypto 28 $3.88B $33M -$34M $62M $1,331M $4,239M
Leverage | Inverse – Fixed Income 19 $2.99B -$33M -$68M -$207M -$1,282M -$2,555M
Leverage | Inverse – Single Stock 489 $33.20B -$803M -$1,859M $2,891M $10,256M $16,051M

Top & Bottom 5 ETFs by 5-Day Flow

The ProShares Ultra S&P 500 (SSO) led all funds, pulling in $221 million in fresh capital. In contrast, the week’s outflows were concentrated in single-stock products, reflecting the broader category trend. The Tradr 2X Long SNDK Daily ETF (SNXX) saw the largest redemption at $229 million, followed by the Direxion Daily TSLA Bull 2X ETF (TSLL), which shed $157 million.

Ticker Fund Name 5-Day Flow
Inflows
SSO ProShares Ultra S&P 500 $221M
SCO ProShares UltraShort Bloomberg Crude Oil $154M
SOXL Direxion Daily Semiconductor Bull 3X ETF $141M
SPXL Direxion Daily S&P 500 Bull 3X ETF $114M
MULL GraniteShares 2x Long MU Daily ETF $109M
Outflows
SNXX Tradr 2X Long SNDK Daily ETF -$229M
TSLL Direxion Daily TSLA Bull 2X ETF -$157M
TQQQ ProShares UltraPro QQQ -$145M
MUU Direxion Daily MU Bull 2X ETF -$143M
TECL Direxion Daily Technology Bull 3X ETF -$118M

Issuer League Table Update

ProShares and Direxion continue to dominate the Leverage & Inverse landscape, commanding 46.55% and 34.40% of the market share, respectively. ProShares also led the weekly issuer league table for inflows, attracting a net $329 million. Conversely, its primary competitor, Direxion, experienced the largest outflows among all issuers, with investors pulling a net $294 million from its funds.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
ProShares 113 $82.22B 46.55%
Direxion 125 $60.76B 34.40%
GraniteShares 44 $8.71B 4.93%
REX Microsectors 32 $8.35B 4.73%
Tradr 83 $4.67B 2.64%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
ProShares $329M
Volatility Shares $28M
Cambria $9M
Outflows
Direxion -$294M
Tradr -$135M
GraniteShares -$114M

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.