Conventional wisdom holds that short and leveraged ETFs exist to facilitate directional betting by aggressive speculators. According to a new academic study, however, these products are outgrowing their retail roots and finding increasing employment as risk management tools for sophisticated investors. In a recent paper titled Short Selling Index ETFs and Market Performance, professors Doina Chichernea, Alex Petkevich and Kainan Wang found that high levels of shorting through US broad market ETFs were typic ...

Top 10 Creations (All ETFs) Top 10 Redemptions (All ETFs) ETF Daily Flows By Asset Class   Net Flows ($, mm) AUM ($, mm) % of AUM Alternatives 25.26 11,746.59 0.22% Asset Allocation 59.61 28,741.34 0.21% Commodities E T Fs 2,225.10 255,807.65 0.87% Currency 384.78 193,661.90 0.20% International Equity 913.58 2,082,862.32 0.04% International Fixed Income 455.96 329,852.70 0.14% Inverse 306.95 14,937.12 2.05% Leveraged -1,116.36 ...

Top 10 Creations (All ETFs) Top 10 Redemptions (All ETFs) ETF Daily Flows By Asset Class   Net Flows ($, mm) AUM ($, mm) % of AUM Alternatives -10.95 11,561.45 -0.09% Asset Allocation -7.63 28,224.77 -0.03% Commodities E T Fs -271.80 252,295.90 -0.11% Currency 980.66 183,247.27 0.54% International Equity 3,734.61 2,037,200.93 0.18% International Fixed Income 472.92 326,090.25 0.15% Inverse 281.29 14,509.06 1.94% Leveraged -988 ...

Top 10 Creations (All ETFs) Top 10 Redemptions (All ETFs) ETF Daily Flows By Asset Class   Net Flows ($, mm) AUM ($, mm) % of AUM Alternatives 36.07 11,558.36 0.31% Asset Allocation 55.54 28,141.86 0.20% Commodities E T Fs 248.20 252,378.80 0.10% Currency 86.18 179,250.42 0.05% International Equity 4,506.47 2,026,221.57 0.22% International Fixed Income 304.17 325,165.31 0.09% Inverse 121.81 14,364.01 0.85% Leveraged -691.29 ...

Core Insights - Short sellers are profiting significantly from bets against AI stocks, accumulating $5.6 billion in just two trading sessions as concerns about the AI boom's sustainability grow [1] - Major tech companies, particularly Meta, NVIDIA, Microsoft, Apple, and Alphabet, have experienced notable declines, with short bets against them yielding $2.8 billion in profits for investors [2] - Outside of the major tech firms, companies like Advanced Micro Devices, Broadcom, Micron, and CoreWeave have faced even steeper losses, with CoreWeave dropping 24% [3] Company-Specific Developments - Meta has seen a 4% decline over the past five sessions, with short sellers increasing their positions to $4.7 billion, resulting in $1.1 billion in profits [4] - Palantir, which had previously surged over 150% since April, has now fallen over 15%, leading to more than $1 billion in gains for short sellers [4] Market Sentiment and Speculation - A report from MIT's Project NANDA indicated that 95% of companies studied are not seeing returns on AI investments, contributing to a shift in market sentiment [5] - OpenAI CEO Sam Altman suggested the industry may be in a bubble similar to the dot-com crash, with limited applications for AI outside of chatbots and search [6] Future Outlook - Some analysts, like Dan Ives from Wedbush, remain optimistic about the AI sector, viewing the current pullback as temporary and predicting continued market growth driven by AI investments [7] - For those skeptical about AI stock valuations, inverse tech-based ETFs have gained traction, with several ETFs showing positive performance [8]