Assets invested in Leverage and Inverse ETFs and ETPs listed globally reached a record US$89.64 billion at the end of July, according to leading independent research and consultancy firm ETFGI.
Leveraged and Inverse ETFs and ETPs gathered net inflows of US$203 million during July and YTD gathered net inflows of US$20.56 billion which is significantly more than the YTD net outflows of US$3.4 billion during 2019 and the full year 2019 net outflows of US$4.13 billion, according to ETFGI’s July 2020 Leveraged and Inverse ETF and ETP industry landscape insights report, a monthly report which is part of an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
Direxion Chief Marketing Officer Andy O’Rourke said they have seen significant volatility in 2020, which is an environment that compels active traders to attempt to seize short-term trading opportunities.
“These active traders are seasoned an astute regarding the markets, which is why we tend to see significant in-flows in our Leveraged and inverse ETFs during market pullbacks like those we saw in March and April,” O’ Rourke said. “Those on the bull side of the trade have certainly been pleased with the upward ride they have taken since.”
ProShares Managing Director Steve Cohen said, “The strong growth we have seen in our AUM this year is testament to the fact that investors continue to find significant value in leveraged and inverse funds.”
Deborah Fuhr, managing partner, founder and owner of ETFGI, noted the S&P 500 gained 5.5% during July, adding the market is 1.25% up during the first month of Q3 which overcome the historical collapse of pandemic.
“During July the tech giants achieved again a great month,” Fuhr said. “Developed markets outside the U.S. were up 3.04%. In July, the three Scandinavian countries Norway (up 10.78), Sweden (up 10.11) and Finland (up 9.18) were the leaders. Emerging markets gained 8.47% in July and are up 19.86% in Q3.”
At the end of July 2020, the Global leveraged/inverse ETF/ETP industry had 875 ETFs/ETPs. Of these 875 ETFs/ETPs, 445 were leveraged products, while 213 were inverse listings, and 217 were Leveraged/Inverse.
The majority of assets were invested in Leveraged ETFs/ETPs with $53.7 billion, followed by Leveraged/Inverse products with assets of $19.7 billion and Inverse with $16.3 billion.
The largest market for leveraged and inverse ETFs/ETPs is the United States, which, at the end of July 2020, had assets of $54 Bn invested in 243 ETFs/ETPs.
The Samsung KODEX 200 Futures Inverse 2X ETF – Acc gathered $2.22 Bn alone, the largest net inflow year-to-date to July.
Top 20 ETFs/ETPs by YTD net new assets July 2020: Leveraged and Inverse
| Name | Country Listed | Ticker | Assets (US$ Mn) Jul-20 |
ADV (US$ Mn) Jul-20 |
NNA (US$ Mn) YTD-20 |
Leverage |
| Samsung KODEX 200 Futures Inverse 2X ETF – Acc | South Korea | 252670 KS | 2,178.32 | 680.69 | 2,223.14 | Leveraged Inverse |
| ProShares Short S&P500 | US | SH US | 3,045.25 | 252.5 | 1,995.46 | Inverse |
| ProShares Ultra DJ-UBS Crude Oil | US | UCO US | 1,431.82 | 208.68 | 1,686.90 | Leveraged |
| ProShares UltraPro Short QQQ | US | SQQQ US | 1,257.48 | 704.28 | 1,625.64 | Leveraged Inverse |
| ProShares UltraPro Short S&P 500 | US | SPXU US | 1,050.88 | 340.53 | 1,488.12 | Leveraged Inverse |
| YUANTA Daily Taiwan Top 50 -1X Bear ETF | Taiwan | 00632R TT | 3,014.89 | 57.44 | 1,398.81 | Inverse |
| Direxion Daily S&P 500 Bear 3X Shares | US | SPXS US | 903.72 | 259.79 | 1,288.58 | Leveraged Inverse |
| NEXT NOTES Nikkei JPX Leveraged Crude Oil ETN – Acc | Japan | 2038 JP | 1,541.82 | 22.8 | 1,282.41 | Leveraged |
| VelocityShares 3x Long Crude Oil ETN – Acc | US | UWT US | 0 | 0 | 1,201.97 | Leveraged |
| Yuanta S&P GSCI Crude Oil 2X Leveraged ER Futures ETF – Acc | Taiwan | 00672L TT | 114.57 | 1.63 | 1,104.03 | Leveraged |
| ProShares UltraPro Short Dow30 | US | SDOW US | 669.6 | 286.54 | 872.43 | Leveraged Inverse |
| NEXT FUNDS Nikkei 225 Double Inverse Index Exchange Traded Fund – Acc | Japan | 1357 JP | 3,427.19 | 413.67 | 848.08 | Leveraged Inverse |
| ProShares UltraShort S&P500 | US | SDS US | 1,270.59 | 255.49 | 831.38 | Leveraged Inverse |
| Direxion Daily Financial Bull 3x Shares | US | FAS US | 1,537.70 | 133.16 | 828.34 | Leveraged |
| Direxion Daily Small Cap Bear 3x Shares | US | TZA US | 664.08 | 589.61 | 737.05 | Leveraged Inverse |
| Samsung KODEX Inverse ETF | South Korea | 114800 KS | 971.6 | 176.99 | 663.61 | Inverse |
| Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X Shares | US | GUSH US | 456.83 | 117.17 | 593.98 | Leveraged |
| Direxion Daily MSCI Brazil Bull 2x Shares | US | BRZU US | 202 | 32.32 | 475.82 | Leveraged |
| NEXT FUNDS Nikkei 225 Inverse Index ETF | Japan | 1571 JP | 739.89 | 14.53 | 459.07 | Inverse |
| NEXT FUNDS Nikkei 225 Leveraged Index ETF | Japan | 1570 JP | 2,003.72 | 1,130.75 | 447.18 | Leveraged |
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