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Trump's Tariffs Kept Market Unfazed As Leveraged ETFs See 74% Inflow Since April Lows: 'Risk Appetite Is Incredibly Strong' - ProShares UltraPro Short S&P500 (ARCA:SPXU)
Benzingaยท2025-10-02 10:49

Core Insights - Investor risk appetite is surging, with significant inflows into speculative investment vehicles despite ongoing tariffs [1][2] - Total assets under management (AUM) in leveraged equity ETFs have increased by 74% since April, surpassing $1.6 billion [1] - The current AUM is nearing the $1.8 billion peak from three years ago, indicating strong risk appetite [2] Market Trends - The market is described as increasingly "febrile," with over $700 million flowing into high-risk funds since spring [2] - The largest one-year inflow was noted in leveraged ETFs tied to gold miners, reflecting a strategy focused on volatility even in safe-haven sectors [4] Leveraged ETFs Overview - Leveraged ETFs utilize financial derivatives and debt to amplify returns, making them popular for short-term speculation [3] - The trend suggests a growing belief among traders in continued upward market momentum [3] Price Action - A list of notable leveraged ETFs shows significant year-to-date and one-year performance, with some bullish options like ProShares UltraPro QQQ up 33.36% YTD and 50.49% over one year [5] - Conversely, bearish leveraged ETFs like ProShares UltraPro Short QQQ have seen declines of -52.11% YTD and -60.86% over one year [5] - Major ETFs tracking the S&P 500 and Nasdaq 100 indices have also shown positive premarket movements [5]