Weekly Channel Summary
The Leverage | Inverse ETF channel remains a massive and high-velocity segment of the market, currently boasting $145B in total Assets Under Management (AUM) across 568 ETFs and 24 distinct brands. The past week saw significant activity with a net outflow of ($965M), contributing to a year-to-date (YTD) flow deficit of ($3.378B). Despite these recent headwinds, the channel has maintained a positive trajectory over the longer term, securing $312M in net new money over the past year. This week’s flows were characterized by a sharp rotation out of equity products and into single-stock and crypto-themed vehicles.
This Week’s Performance Leaders and Laggards
Performance across the leverage and inverse landscape was highly bifurcated this week. Defensive sectors and commodities were the primary beneficiaries of market volatility. Equity: Sector – Utilities led the category trackers with a robust 7.29% return, closely followed by Equity: Thematic – Precious Metals at 6.90%. Conversely, growth-oriented and financial segments struggled significantly; Equity: Thematic – FinTech dropped -5.96%, and the Financials sector fell -4.78%. This dispersion highlights a clear risk-off sentiment as investors retreated from high-beta tech and banking plays toward tangible assets and regulated utilities.
Top & Bottom 5 ETFs by Weekly Performance
The single best performer this week was the Direxion Daily Utilities Bull 3X Shares (UTSL), which surged 22.79%. On the losing end, inverse miners and leveraged financials faced the steepest declines relative to the weekly trend, with MicroSectors Gold Miners -3X Inverse Leveraged ETNs (GDXD) dropping -23.77% and MicroSectors Travel 3x Leveraged ETN (FLYU) falling -22.52%.
| Ticker | Fund Name | WTD Performance |
|---|---|---|
| Top Performers | ||
| UTSL | Direxion Daily Utilities Bull 3X Shares | 22.79% |
| KORU | Direxion MSCI Daily South Korea Bull 3X Shares | 22.61% |
| BNKD | MicroSectors U.S. Big Banks -3 Inverse Leveraged ETN | 20.65% |
| FLYD | MicroSectors Travel -3x Inverse Leveraged ETN | 17.55% |
| FAZ | Direxion Daily Financial Bear 3X Shares | 15.74% |
| Bottom Performers | ||
| GDXD | MicroSectors Gold Miners -3X Inverse Leveraged ETNs | -23.77% |
| FLYU | MicroSectors Travel 3x Leveraged ETN | -22.52% |
| BNKU | MicroSectors U.S. Big Banks 3 Leveraged ETN | -18.92% |
| DUST | Direxion Daily Gold Miners Index Bear 2x Shares | -15.28% |
| JDST | Direxion Daily Junior Gold Miners Index Bear 2X Shares | -15.23% |
Analyzing the Weekly Flows
The channel experienced a total net outflow of ($965M) this week, driven primarily by heavy liquidations in equity products. The Leverage | Inverse – Single Stock category was the standout leader for inflows, capturing $330M and bringing its total AUM to $25.19B. Crypto products also found favor with $169M in new capital. Conversely, the Equity composite saw a massive ($1,033M) exit, signaling a broad de-risking event among leveraged traders.
Category Flows Summary
| Category | Fund Count | AUM | 5 Day | 30 Day | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Leverage | Inverse – Single Stock | 305 | $25,199M | $330M | $3,208M | $2,125M | $10,142M |
| Leverage | Inverse – Crypto | 22 | $2,955M | $169M | $565M | $523M | $4,440M |
| Leverage | Inverse – Commodity | 16 | $6,098M | ($169M) | $1,311M | $1,599M | $2,612M |
| Leverage | Inverse – Fixed Income | 15 | $4,005M | ($262M) | ($730M) | ($875M) | ($2,249M) |
| Leverage | Inverse – Equity | 191 | $106,428M | ($1,033M) | ($3,296M) | ($6,749M) | ($14,633M) |
Top & Bottom 5 ETFs by 5-Day Flow
In a clear play on market volatility, ProShares UltraPro QQQ (TQQQ) saw the highest inflows at $349M. Conversely, the Direxion Daily Semiconductor Bull 3x Shares (SOXL) suffered massive liquidations of ($1,652M), and Direxion Daily 20+ Year Treasury Bull 3X Shares (TMF) lost ($234M).
| Ticker | Fund Name | 5-Day Flow |
|---|---|---|
| Inflows | ||
| TQQQ | ProShares UltraPro QQQ | $349M |
| SQQQ | ProShares UltraPro Short QQQ | $223M |
| SOXS | Direxion Daily Semiconductor Bear 3x Shares | $193M |
| QID | ProShares UltraShort QQQ | $74M |
| KORU | Direxion MSCI Daily South Korea Bull 3X Shares | $58M |
| Outflows | ||
| SOXL | Direxion Daily Semiconductor Bull 3x Shares | ($1,652M) |
| TMF | Direxion Daily 20+ Year Treasury Bull 3X Shares | ($234M) |
| KOLD | ProShares UltraShort Bloomberg Natural Gas | ($153M) |
| PSQ | ProShares Short QQQ | ($110M) |
| NAIL | Direxion Daily Homebuilders & Supplies Bull 3X Shares | ($74M) |
Issuer League Table Update
The competitive landscape is dominated by two primary players: ProShares and Direxion, which together control over 83% of the channel’s AUM. ProShares currently holds the top spot with 48.22% market share ($70.13B), while Direxion follows with 34.92% ($50.79B). This week, ProShares gathered the most in net weekly inflows with $374M, while Direxion saw the largest outflows, losing ($1,779M) due to its concentration in hard-hit tech and treasury bull funds.
Top 5 Issuers by AUM
| Brand | Fund Count | AUM | AUM Market Share |
|---|---|---|---|
| ProShares | 107 | $70.13B | 48.22% |
| Direxion | 124 | $50.79B | 34.92% |
| GraniteShares | 39 | $6.97B | 4.79% |
| REX Microsectors | 19 | $6.73B | 4.62% |
| Tradr | 64 | $2.50B | 1.72% |
Top & Bottom 3 Issuers by 5-Day Flow
| Brand | 5-Day Flow |
|---|---|
| Inflows | |
| ProShares | $374M |
| Tradr | $234M |
| Volatility Shares | $116M |
| Outflows | |
| Direxion | -$1,779M |
| GraniteShares | -$38M |
| Cambria | -$6M |
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.
