He added investors turned to ETFs for liquidity and a more efficient way to make bearish wagers. “That’s why you saw the explosion in inverse and leveraged ETFs,” Daily told Bloomberg.
Leveraged ETFs have taken heat recently amid allegations they added to stock market volatility in August, but Wall Street industry analysts say the claims are overblown. [Don’t Blame Leveraged ETFs]
Tisha Guerrero contributed to this article.
Full disclosure: Tom Lydon’s clients own SPY.