Equity Selling Drives $2.9B Outflow Despite Risk-On Rally in Small Caps

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Weekly Channel Summary

The Leverage | Inverse channel currently manages $154.9 Billion across 535 ETFs issued by 24 Issuers. It was a challenging week for asset gathering, with the channel seeing net outflows of ($2.9 Billion). This extends the year-to-date trend to ($3.7 Billion) in outflows, although the channel remains positive over the trailing one-year period with $259 Million in net inflows.

This Week’s Performance Leaders and Laggards

Performance this week was defined by extreme volatility in niche corners of the market, creating massive dispersion between leveraged bull and bear strategies. Crypto and specific international exposures led the charge, while Commodities became a key battleground—particularly in Natural Gas and Silver. In the core equity space, risk-on sectors outperformed, with U.S. Small Cap (+4.6%) and Consumer Discretionary (+5.1%) posting strong gains. Conversely, defensive areas like Utilities (-1.6%) and Infrastructure (-0.2%) lagged significantly behind the broader market rally.

Top & Bottom 5 ETFs by Weekly Performance

The standout performer this week was the TXXS (21Shares 2x Long Sui ETF), surging over 57%. On the downside, volatility in commodities weighed heavily on the BOIL and ZSL, which both posted losses exceeding 23%.

Top Performers
Ticker Fund Name WTD Performance
TXXS 21Shares 2x Long Sui ETF 57.24%
KORU Direxion MSCI Daily South Korea Bull 3X Shares 38.45%
NAIL Direxion Daily Homebuilders & Supplies Bull 3X Shares 34.27%
KOLD ProShares UltraShort Bloomberg Natural Gas 29.97%
AGQ ProShares Ultra Silver 24.56%
Bottom Performers
BOIL ProShares Ultra Bloomberg Natural Gas -25.81%
ZSL ProShares UltraShort Silver -23.64%
GDXD MicroSectors Gold Miners -3X Inverse Leveraged ETNs -21.83%
DUST Direxion Daily Gold Miners Index Bear 2x Shares -14.83%
JDST Direxion Daily Junior Gold Miners Index Bear 2X Shares -14.49%

Analyzing the Weekly Flows

The channel shed a total of ($2.9 Billion) this week, driven primarily by heavy selling in the Equity category, which saw ($2.6 Billion) in outflows. Despite the broader selling, the Commodity category managed to attract $192 Million in new assets, bringing its total AUM to $5.6 Billion. Conversely, the Single Stock category also faced headwinds, recording outflows of ($356 Million).

Category Flows Summary

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Leverage | Inverse – Commodity 18 $5,579M $192M $951M $848M $246M $1,486M
Leverage | Inverse – Crypto 21 $5,472M ($38M) $25M $1,918M ($61M) $4,349M
Leverage | Inverse – Fixed Income 15 $4,539M ($122M) ($248M) ($618M) ($126M) ($1,702M)
Leverage | Inverse – Single Stock 290 $27,436M ($356M) ($181M) $4,917M ($911M) $9,998M
Leverage | Inverse – Equity 191 $111,841M ($2,557M) ($4,207M) ($6,021M) ($2,878M) ($13,871M)

Top & Bottom 5 ETFs by 5-Day Flow

The SSO (ProShares Ultra S&P 500) attracted the most significant capital this week, gathering over $303 Million. On the other end of the spectrum, the SOXL (Direxion Daily Semiconductor Bull 3x Shares) and TQQQ (ProShares UltraPro QQQ) faced heavy selling pressure, seeing massive outflows of ($2.6 Billion) and ($225 Million) respectively.

Inflows
Ticker Fund Name 5-Day Flow
SSO ProShares Ultra S&P 500 $303M
BOIL ProShares Ultra Bloomberg Natural Gas $259M
SOXS Direxion Daily Semiconductor Bear 3x Shares $251M
SQQQ ProShares UltraPro Short QQQ $154M
ZSL ProShares UltraShort Silver $58M
Outflows
SOXL Direxion Daily Semiconductor Bull 3x Shares ($2,614M)
TQQQ ProShares UltraPro QQQ ($225M)
TNA Direxion Daily Small Cap Bull 3x Shares ($143M)
TMF Direxion Daily 20+ Year Treasury Bull 3X Shares ($120M)
AGQ ProShares Ultra Silver ($71M)

Issuer League Table Update

ProShares and Direxion continue to maintain their stronghold on the market share leaders, sitting at #1 and #2 respectively. However, their flow fortunes diverged sharply this week: ProShares gathered the most weekly inflows ($376M), while Direxion saw the largest outflows ($2.6B), largely due to the semiconductor activity mentioned above.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
ProShares 107 $72.95B 47.10%
Direxion 120 $52.64B 33.99%
GraniteShares 39 $7.79B 5.03%
REX Microsectors 19 $7.63B 4.93%
Volatility Shares 6 $3.73B 2.41%

Top & Bottom 3 Issuers by 5-Day Flow

Inflows
Brand 5-Day Flow
ProShares $376M
Leverage Shares $41M
REX Microsectors $29M
Outflows
Direxion ($2,627M)
GraniteShares ($432M)
Tradr ($152M)

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.