ETF Action Weekly: Disruptive Tech Leads Leverage Performance

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Weekly Channel Summary

The Leverage | Inverse ETF channel currently tracks 569 ETFs across 25 brands, managing approximately $158 billion in total Assets Under Management (AUM). This past week saw significant net outflows of -$2.44B, bringing year-to-date flows to -$2.81B. Over the trailing 1-year period, the category has experienced total net outflows of -$15.46B.

This Week’s Performance Leaders and Laggards

Performance across the Leverage and Inverse space showed notable dispersion. Thematic equity plays led the upside, driven by the Disruptive Tech category (+9.59% WTD), Evolving Consumer (+8.45%), and Information Technology (+8.25%). On the flip side, Energy-related exposures struggled the most, with Commodity: Focused – Energy dropping -4.41%, closely followed by Equity: Sector – Energy at -3.45% and Thematic – Midstream & MLPs at -2.99%. This highlights strong risk-on momentum in tech while energy positions faced near-term headwinds.

Top & Bottom 5 ETFs by Weekly Performance

The single best-performing ETF this week was the Defiance 2X Daily Long Pure Quantum ETF (QPUX), soaring an impressive 101.90%. On the downside, the two worst-performing funds were the MicroSectors Solactive FANG & Innovation -3X Inverse Leveraged ETN (BERZ) and the MicroSectors Travel -3x Inverse Leveraged ETN (FLYD), which tumbled -26.34% and -25.91%, respectively.

Ticker Fund Name WTD Performance
Top Performers
QPUX Defiance 2X Daily Long Pure Quantum ETF 101.90%
BULZ MicroSectors Solactive FANG & Innovation 3X Leveraged ETN 32.59%
FLYU MicroSectors Travel 3x Leveraged ETN 31.17%
KORU Direxion Daily MSCI South Korea Bull 3X ETF 30.89%
TARK AXS 2X Innovation ETF Fund 29.94%
Bottom Performers
BERZ MicroSectors Solactive FANG & Innovation -3X Inverse Leveraged ETN -26.34%
FLYD MicroSectors Travel -3x Inverse Leveraged ETN -25.91%
WEBS Direxion Daily Dow Jones Internet Bear 3X ETF -21.65%
TECS Direxion Daily Technology Bear 3X ETF -21.59%
HIBS Direxion Daily S&P 500 High Beta Bear 3X ETF -20.72%

Analyzing the Weekly Flows

Overall, the Leverage | Inverse channel witnessed total net outflows of -$2.44B this week. Despite the broad outflows, the Crypto category gathered the most assets, bringing in $101M to reach a total AUM of $4.03B. Another bright spot was seen in longer term Single Stock and Commodity flows. Conversely, the broad Equity category bore the brunt of the selling pressure, suffering the largest outflows with -$2.16B exiting the space.

Category Flows Summary

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Leverage | Inverse – Crypto 22 $4,030M $101M $222M $1,089M $1,013M $5,012M
Leverage | Inverse – Commodity 16 $5,915M -$15M $175M $1,493M $2,212M $3,149M
Leverage | Inverse – Fixed Income 15 $3,623M -$94M -$153M -$746M -$943M -$1,712M
Leverage | Inverse – Single Stock 318 $30,057M -$270M $334M $4,246M $3,481M $6,303M
Leverage | Inverse – Equity 192 $113,942M -$2,158M -$4,441M -$4,304M -$8,592M -$28,235M

Top & Bottom 5 ETFs by 5-Day Flow

Leading the pack for weekly creations was the ProShares UltraPro Short QQQ (SQQQ), which hauled in $812M. Meanwhile, the most significant redemptions hit semiconductor and broad tech exposure, with the Direxion Daily Semiconductor Bull 3X ETF (SOXL) bleeding -$2.77B and the ProShares UltraPro QQQ (TQQQ) seeing outflows of -$1.46B.

Ticker Fund Name 5-Day Flow
Inflows
SQQQ ProShares UltraPro Short QQQ $812M
SOXS Direxion Daily Semiconductor Bear 3X ETF $697M
QLD ProShares Ultra QQQ $667M
SSO ProShares Ultra S&P 500 $534M
SPXU ProShares UltraPro Short S&P500 $137M
Outflows
SOXL Direxion Daily Semiconductor Bull 3X ETF -$2,770M
TQQQ ProShares UltraPro QQQ -$1,456M
SPXL Direxion Daily S&P 500 Bull 3X ETF -$150M
UPRO ProShares UltraPro S&P500 -$149M
KORU Direxion Daily MSCI South Korea Bull 3X ETF -$133M

Issuer League Table Update

The Leverage | Inverse space remains highly concentrated, with the top two issuers, ProShares and Direxion, controlling roughly 46.7% and 34.1% of the market share, respectively. ProShares had the best week for asset gathering, taking in $415M. On the other end of the spectrum, Direxion faced the steepest redemptions, losing -$2.48B in net outflows.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
ProShares 107 $73.61B 46.71%
Direxion 118 $53.70B 34.08%
GraniteShares 39 $7.67B 4.87%
REX Microsectors 19 $7.58B 4.81%
Tradr 63 $4.59B 2.91%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
ProShares $415M
Tradr $175M
Volatility Shares $60M
Outflows
Leverage Shares -$49M
GraniteShares -$523M
Direxion -$2,475M

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.