Investors are pouring into Direxion’s leveraged Micron Technology, Inc. (MU) exchange-traded fund as the semiconductor giant rides a wave of artificial intelligence infrastructure spending to all-time highs.
The Direxion Daily MU Bull 2X Shares (MUU) has exploded from $100 million to nearly $400 million in assets over recent weeks, according to Mo Sparks, chief product officer at Direxion. The Micron ETF pulled in $148.27 million in net flows over the past month alone.
The rapid growth reflects trader positioning ahead of Micron’s upcoming earnings report and broader confidence in companies with proven results in the AI buildout, according to Sparks. Micron has emerged as a key beneficiary of massive data center investments from tech giants like Amazon.com, Inc. (AMZN) and Meta Platforms, Inc. (META).
“What you’re seeing is within AI and semis in particular, traders coming back towards companies that have stronger fundamentals and have a proven track record,” Sparks said in an interview.
The fund has posted a year-to-date return of 377.78% and a three-month return of 221.2%, according to ETF Database. MUU provides 2x leveraged exposure to Micron’s daily price movements. The fund launched in October 2024, with a 1.06% net expense ratio.
Trading volume has surged alongside asset growth, with the fund seeing over 150 million shares change hands on Tuesday last week, according to Sparks. That level of activity places MUU among the top 100 most-traded ETFs in the market, he added.
“It’s traded over 75 million” shares in the last six sessions, Sparks said.
Micron ETF Sees Retail Trader Interest
Retail traders appear to be driving most of the activity in MUU, based on patterns Direxion observed across its single-stock ETF lineup, according to Sparks. The firm offers more than 40 single-stock ETFs.
Micron’s strong earnings performance last quarter and its positioning in both AI hardware and data center infrastructure have attracted traders, according to Sparks. The company’s next earnings report is expected in under a month.
“Micron is one of the key beneficiaries of all that activity” around data center construction, Sparks said.
The fund is designed as a short-term trading vehicle that resets daily, not a buy-and-hold investment, according to Sparks. Traders using MUU are positioning around news cycles and earnings announcements rather than making long-term bets.
Direxion also offers the Direxion Daily MU Bear 1X Shares (MUD), which provides inverse exposure to Micron at 1x leverage for hedging purposes.
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