Weekly Channel Summary
The Leverage | Inverse ETF channel currently holds a total of $147 billion in Assets Under Management (AUM) across 427 ETFs from 25 different issuers. The channel experienced significant outflows this past week, shedding $2.72 billion. This trend of negative flows persists year-to-date with a total of $13.21 billion withdrawn, and over the past year with $7.65 billion in net outflows.
This Week’s Performance Leaders and Laggards
Thematic ETFs focused on Precious Metals were the standout performers this week, posting a strong 5.00% return and boasting an impressive 105.40% gain year-to-date. In contrast, Consumer Staples-focused ETFs were the primary laggards, dropping by -0.67% for the week. Digital Assets and Asia-Pacific Emerging markets also showed notable strength with weekly gains of 4.70% and 4.20% respectively.
Category Performance Snapshot
The table below breaks down the week-to-date performance of each category by its corresponding levered and inverse ETF implementations.
| Category | Levered: 2x | Levered: 3x | Levered: 4x | Inverse: 1x | Inverse: 2x | Inverse: 3x |
|---|---|---|---|---|---|---|
| Commodity: Focused – Agriculture | 3.71% | |||||
| Commodity: Focused – Energy | -2.05% | 0.93% | 2.13% | -1.27% | ||
| Commodity: Focused – Industrial Metals | 4.53% | -3.91% | ||||
| Commodity: Focused – Precious Metals | 4.05% | 3.55% | -6.14% | -3.79% | ||
| Digital Asset: Cryptocurrency – Bitcoin | 17.26% | -12.01% | ||||
| Equity: Emerging Large Cap | 7.14% | 10.77% | -9.96% | |||
| Equity: Global Ex-U.S. Large Cap – Blend | 2.48% | -2.43% | ||||
| Equity: Region – Asia-Pacific Emerging | 5.86% | 7.27% | -7.83% | -11.64% | ||
| Equity: Region – Eurozone | 1.89% | 2.75% | -1.86% | |||
| Equity: Region – Latin America | 2.58% | -2.50% | ||||
| Equity: Sector – Communication Services | 4.54% | 6.63% | ||||
| Equity: Sector – Consumer Discretionary | 2.79% | -0.27% | -2.87% | |||
| Equity: Sector – Consumer Staples | -1.47% | 1.52% | ||||
| Equity: Sector – Financials | 2.53% | 3.17% | -0.52% | -5.92% | ||
| Equity: Sector – Health Care | -1.66% | -4.22% | 1.52% | 4.16% | ||
| Equity: Sector – Industrial | 0.74% | 0.77% | -0.73% | -0.49% | ||
| Equity: Sector – Information Technology | 7.42% | 9.70% | -8.64% | -9.08% | ||
| Equity: Sector – Materials | -0.84% | 0.64% | ||||
| Equity: Sector – Real Estate | 0.63% | 0.84% | -0.27% | -0.64% | -1.06% | |
| Equity: Sector – Utilities | 4.76% | 7.07% | -4.61% | |||
| Equity: Thematic – Disruptive Tech | 4.90% | 8.07% | -7.77% | |||
| Equity: Thematic – Evolving Consumer | -5.30% | -0.60% | 0.19% | |||
| Equity: Thematic – FinTech | 16.64% | -7.57% | ||||
| Equity: Thematic – Industrial Revolution | 6.23% | |||||
| Equity: Thematic – Infrastructure | 2.54% | |||||
| Equity: Thematic – Precious Metals | 12.87% | -12.05% | ||||
| Equity: U.S. Large Cap – Blend | 2.02% | 4.50% | 5.91% | -2.34% | -4.36% | |
| Equity: U.S. Large Cap – Growth | 6.35% | 5.46% | -1.70% | -4.61% | -5.16% | |
| Equity: U.S. Small Cap – Blend | -0.62% | -0.57% | 0.50% | -0.11% | ||
| Fixed Income: Taxable – Government Intermediate | 0.31% | 0.39% | -0.30% | |||
| Fixed Income: Taxable – Government Long | -0.72% | 4.46% | -2.89% | -4.44% | ||
| Fixed Income: Taxable – High Yield | 0.06% | |||||
| Fixed Income: Taxable – Preferred Stock | 1.93% |
Top & Bottom 5 ETFs by Weekly Performance
The week’s best individual performer was the 2x Solana ETF (SOLT), which surged an incredible 36.97%. On the other end of the spectrum, cannabis-related ETFs faced a difficult week, with the AdvisorShares MSOS Daily Leveraged ETF (MSOX) plummeting -22.03%. Inverse Ether ETFs also struggled, with the T-Rex 2X Inverse Ether Daily Target ETF (ETQ) falling -15.16%.
| Top Performers | ||
| SOLT | 2x Solana ETF | 36.97% |
| SLON | ProShares Ultra Solana ETF | 36.87% |
| KORU | Direxion MSCI Daily South Korea Bull 3X Shares | 21.24% |
| WILD | VistaShares Animal Spirits Daily 2X Strategy ETF | 18.01% |
| LMBO | Direxion Daily Crypto Industry Bull 2X Shares | 16.64% |
| Bottom Performers | ||
| MSOX | AdvisorShares MSOS Daily Leveraged ETF | -22.03% |
| ETQ | T-Rex 2X Inverse Ether Daily Target ETF | -15.16% |
| ETHD | ProShares UltraShort Ether ETF | -15.10% |
| GDXD | MicroSectors Gold Miners -3X Inverse Leveraged ETNs | -15.10% |
| YANG | Direxion Daily FTSE China Bear 3X Shares | -11.64% |
Analyzing the Weekly Flows
The Leverage | Inverse channel saw total net outflows of over $2.7 billion this week. The Equity category was the primary driver of this trend, with a massive $1.8 billion withdrawn from its $105 billion AUM. The Single Stock category also saw significant outflows of $577 million. In contrast, no category managed to attract meaningful inflows to offset the widespread selling pressure.
Category Flows Summary
| Category | Fund Count | AUM | 5 Day | 30 Day | 90 Day | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| Leverage | Inverse – Commodity | 18 | $3,161M | ($18M) | $99M | $294M | $405M | $278M |
| Leverage | Inverse – Crypto | 18 | $8,504M | ($37M) | $624M | $667M | $1,509M | $3,018M |
| Leverage | Inverse – Fixed Income | 14 | $6,089M | ($332M) | ($255M) | ($310M) | ($418M) | $185M |
| Leverage | Inverse – Single Stock | 186 | $24,150M | ($577M) | ($76M) | ($1,831M) | $5,020M | $9,340M |
| Leverage | Inverse – Equity | 185 | $104,972M | ($1,800M) | ($3,874M) | ($10,622M) | ($19,784M) | ($20,531M) |
Top & Bottom 5 ETFs by 5-Day Flow
Despite broad outflows, some inverse ETFs attracted significant capital. The ProShares UltraPro Short QQQ (SQQQ) led the pack, pulling in $306 million. On the flip side, the Direxion Daily Semiconductor Bull 3x Shares (SOXL) experienced the largest exodus, with investors withdrawing $929 million. Another popular tech-focused fund, the ProShares UltraPro QQQ (TQQQ), also saw heavy outflows of $631 million.
| Inflows | ||
| SQQQ | ProShares UltraPro Short QQQ | $306M |
| SOXS | Direxion Daily Semiconductor Bear 3x Shares | $131M |
| FAS | Direxion Daily Financial Bull 3x Shares | $84M |
| SOLT | 2x Solana ETF | $83M |
| SPXU | ProShares UltraPro Short S&P500 | $49M |
| Outflows | ||
| SOXL | Direxion Daily Semiconductor Bull 3x Shares | ($929M) |
| TQQQ | ProShares UltraPro QQQ | ($631M) |
| TMF | Direxion Daily 20+ Year Treasury Bull 3X Shares | ($352M) |
| SPXL | Direxion Daily S&P 500 Bull 3x Shares | ($324M) |
| UPRO | ProShares UltraPro S&P500 | ($259M) |
Issuer League Table Update
The issuer landscape remains dominated by ProShares and Direxion, which together control over 80% of the market share. ProShares holds 45.29% of the AUM, while Direxion accounts for 35.43%. However, both top issuers saw significant outflows this week. Tradr was the top asset gatherer, taking in $50 million, while Direxion saw the largest outflows among all issuers, with $1.69 billion withdrawn.
Top 5 Issuers by AUM
| Brand | Fund Count | AUM | AUM Market Share |
|---|---|---|---|
| ProShares | 103 | $66.54B | 45.29% |
| Direxion | 111 | $52.06B | 35.43% |
| GraniteShares | 36 | $7.78B | 5.30% |
| REX Microsectors | 19 | $6.44B | 4.38% |
| Volatility Shares | 6 | $5.76B | 3.92% |
Top & Bottom 3 Issuers by 5-Day Flow
| Inflows | |
| Tradr | $50M |
| REX Microsectors | $7M |
| Cambria | $5M |
| Outflows | |
| Direxion | ($1,689M) |
| ProShares | ($683M) |
| GraniteShares | ($196M) |
For a deeper dive into these trends, access our FREE, in-depth Thematic 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.
