Weekly Channel Summary
The Leverage | Inverse ETF channel continues to be a focal point for high-conviction traders, currently overseeing approximately $158 billion in total Assets Under Management (AUM) across 546 ETFs and 23 issuers. This past week saw a notable shift in sentiment, with the channel recording $951 million in total net outflows. Despite the weekly dip, the channel’s long-term trajectory remains resilient, boasting a one-year flow total of $1.41 billion, even as year-to-date (YTD) activity reflects a broader cooling period with $4.68 billion in net redemptions.
This Week’s Performance Leaders and Laggards
Performance dispersion was a defining characteristic of the channel this week. Significant “action” was concentrated in the digital asset and commodity spaces. Digital Asset: Cryptocurrency – Bitcoin led the way with a category return of 5.26%, followed closely by Equity: Sector – Real Estate at 4.24% and Commodity: Focused – Precious Metals at 3.96%. Conversely, core equity sectors faced headwinds; Equity: Sector – Financials plummeted -2.33% and Equity: Thematic – Evolving Consumer saw a -2.48% decline. The divergence highlights a flight toward alternative assets and defensive sector positioning as volatility in large-cap growth names persisted.
Top & Bottom 5 ETFs by Weekly Performance
The single best-performing fund this week was MicroSectors Gold Miners 3X Leveraged ETN (GDXU), which surged 41.91%. On the flip side, performance laggards were dominated by inverse precious metal strategies and ether tracking, with ProShares UltraShort Silver (ZSL) and T-Rex 2X Inverse Ether Daily Target ETF (ETQ) recording steep losses of -22.30% and -14.60%, respectively.
| Ticker | Fund Name | WTD Performance |
|---|---|---|
| Top Performers | ||
| GDXU | MicroSectors Gold Miners 3X Leveraged ETN | 41.91% |
| AGQ | ProShares Ultra Silver | 23.35% |
| URAA | Direxion Daily Uranium Industry Bull 2X Shares | 15.37% |
| DFEN | Direxion Daily Aerospace & Defense Bull 3X Shares | 14.52% |
| ETHU | 2x Ether ETF | 14.30% |
| Bottom Performers | ||
| ZSL | ProShares UltraShort Silver | -22.30% |
| ETQ | T-Rex 2X Inverse Ether Daily Target ETF | -14.60% |
| ETHD | ProShares UltraShort Ether ETF | -14.45% |
| GDXD | MicroSectors Gold Miners -3X Inverse Leveraged ETNs | -14.31% |
| BTCZ | T-Rex 2X Inverse Bitcoin Daily Target ETF | -11.82% |
Analyzing the Weekly Flows
The channel experienced a total net outflow of $951 million this week. Leverage | Inverse – Commodity was the standout leader in demand, attracting $473 million in net new money, bringing its total AUM to $7,098 million. Leverage | Inverse – Single Stock also saw positive momentum with $73 million in weekly inflows. On the opposite end of the spectrum, Leverage | Inverse – Equity saw massive profit-taking or positioning shifts, resulting in a significant $1.41 billion in weekly outflows.
Category Flows Summary
| Category | Fund Count | AUM | 5 Day | 30 Day | 90 Day | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| Leverage | Inverse – Commodity | 18 | $7,098M | $473M | $1,099M | $982M | $719M | $1,905M |
| Leverage | Inverse – Single Stock | 290 | $27,956M | $73M | ($436M) | $4,523M | ($838M) | $10,052M |
| Leverage | Inverse – Crypto | 21 | $5,789M | ($15M) | ($120M) | $1,008M | ($75M) | $4,279M |
| Leverage | Inverse – Fixed Income | 15 | $4,581M | ($71M) | ($287M) | ($582M) | ($197M) | ($1,907M) |
| Leverage | Inverse – Equity | 190 | $113,021M | ($1,411M) | ($4,760M) | ($7,822M) | ($4,289M) | ($12,922M) |
Top & Bottom 5 ETFs by 5-Day Flow
In a counter-intuitive move following strong performance, investors piled $226 million into ProShares UltraShort Silver (ZSL), likely a bet against current commodity momentum. The primary outflow story was Direxion Daily Semiconductor Bull 3x Shares (SOXL), which bled a massive $1.74 billion. Other notable outflows occurred in ProShares UltraPro Short QQQ (SQQQ) with $128 million in redemptions.
| Ticker | Fund Name | 5-Day Flow |
|---|---|---|
| Inflows | ||
| ZSL | ProShares UltraShort Silver | $226M |
| SSO | ProShares Ultra S&P 500 | $219M |
| SOXS | Direxion Daily Semiconductor Bear 3x Shares | $185M |
| AGQ | ProShares Ultra Silver | $162M |
| TQQQ | ProShares UltraPro QQQ | $160M |
| Outflows | ||
| SOXL | Direxion Daily Semiconductor Bull 3x Shares | ($1,742M) |
| SQQQ | ProShares UltraPro Short QQQ | ($128M) |
| TNA | Direxion Daily Small Cap Bull 3x Shares | ($109M) |
| SPXL | Direxion Daily S&P 500 Bull 3x Shares | ($104M) |
| TMF | Direxion Daily 20+ Year Treasury Bull 3X Shares | ($79M) |
Issuer League Table Update
ProShares and Direxion remain the dominant forces in the leverage and inverse space, controlling 46.96% and 33.81% of the market share, respectively. ProShares had a banner week, leading all issuers with $856 million in net weekly inflows. Conversely, Direxion saw the largest outflow among top issuers, with a staggering $1.76 billion exiting their product suite, largely driven by rotation out of leveraged semiconductor and treasury bulls.
Top 5 Issuers by AUM
| Brand | Fund Count | AUM | AUM Market Share |
|---|---|---|---|
| ProShares | 107 | $74.44B | 46.96% |
| Direxion | 120 | $53.59B | 33.81% |
| REX Microsectors | 19 | $8.16B | 5.15% |
| GraniteShares | 39 | $8.05B | 5.08% |
| Volatility Shares | 6 | $4.01B | 2.53% |
Top & Bottom 3 Issuers by 5-Day Flow
| Brand | 5-Day Flow |
|---|---|
| Inflows | |
| ProShares | $856M |
| GraniteShares | $70M |
| Defiance | $40M |
| Outflows | |
| Direxion | ($1,763M) |
| Tradr | ($150M) |
| Volatility Shares | ($18M) |
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.
