📊⚡💸 Retail Rush Into Leveraged ETFs Hits Record as Tariff Chaos Fuels Volatility Bets
🔹 Summary:
Leveraged equity ETFs have seen record inflows of nearly $11 billion this month, as retail investors bet on sharp rebounds following tariff-driven market declines.
With hopes of Fed rate cuts and paused tariffs, traders are tactically exploiting volatility despite long-term risks like performance decay.
🔹 Key Points:
• Inflows into leveraged equity ETFs reached $10.95B this month, surpassing the prior record of $9.2B in March 2020.
• The surge follows a 5% drop in the S&P 500 and Nasdaq after Trump's reciprocal tariff announcement, later softened by a 90-day pause.
• Platforms like Robinhood have helped retail investors access ETFs mimicking the S&P 500 and Nasdaq 100 without using futures.
• Experts highlight their appeal for short-term gains, but caution against long-term holding due to volatility-induced decay.
• Some traders actively short triple-leveraged ETFs like TQQQ to profit from structural inefficiencies and daily resets.
@CMEActiveTrader Tickers Of Interest: $NQ $ES
Tickers Of Interest: $SPY $TQQQ $QQQ $USD $MSCI
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