ETF Trends
ETF Trends

More investors are taking advantage of volatility and wide market oscillations with leveraged and inverse exchange traded funds to quickly capitalize on quick turns.

ETF investors bet big on triple-leveraged products Tuesday, anticipating a robust rebound after the back-to-back sell off, reports Michael P Regan for Bloomberg.

For instance, the ProShares UltraPro QQQ (NasdaqGM: TQQQ), which takes the 3x or 300% daily performance of the Nasdaq-100 Index, saw $155.2 million in net inflows Tuesday, or about 12% of the fund’s total market cap.

Additionally, the ProShares UltraPro S&P500 (NYSEArca: UPRO), which tracks the 3x or 300% performance of the S&P 500, experienced $83.1 million in inflows, or about 12% of its total market cap.

The slightly more conservative trader funneled $150.7 million into the the ProShares Ultra S&P 500 ETF (NYSEArca: SSO), which reflects the 2x or 200% daily performance of the S&P 500, or about 10% of the fund’s total market cap.

Regan also pointed out that there is a chance that some traders may have been throwing money into these leveraged ETFs to short the securities. However, short interest remains muted – for example, bets against TQQQ were at 0.9% of shares outstanding but way below the two-year high of 2.6% last month. Short interest on other leveraged stock ETFs also paint a similar picture.

Showing Page 1 of 2