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

NameCountry ListedTickerAssets
(US$ Mn)
Jul-20
ADV
(US$ Mn)
Jul-20
NNA
(US$ Mn)
YTD-20
Leverage
Samsung KODEX 200 Futures Inverse 2X ETF – AccSouth Korea252670 KS2,178.32680.692,223.14Leveraged Inverse
ProShares Short S&P500USSH US3,045.25252.51,995.46Inverse
ProShares Ultra DJ-UBS Crude OilUSUCO US1,431.82208.681,686.90Leveraged
ProShares UltraPro Short QQQUSSQQQ US1,257.48704.281,625.64Leveraged Inverse
ProShares UltraPro Short S&P 500USSPXU US1,050.88340.531,488.12Leveraged Inverse
YUANTA Daily Taiwan Top 50 -1X Bear ETFTaiwan00632R TT3,014.8957.441,398.81Inverse
Direxion Daily S&P 500 Bear 3X SharesUSSPXS US903.72259.791,288.58Leveraged Inverse
NEXT NOTES Nikkei JPX Leveraged Crude Oil ETN – AccJapan2038 JP1,541.8222.81,282.41Leveraged
VelocityShares 3x Long Crude Oil ETN – AccUSUWT US001,201.97Leveraged
Yuanta S&P GSCI Crude Oil 2X Leveraged ER Futures ETF – AccTaiwan00672L TT114.571.631,104.03Leveraged
ProShares UltraPro Short Dow30USSDOW US669.6286.54872.43Leveraged Inverse
NEXT FUNDS Nikkei 225 Double Inverse Index Exchange Traded Fund – AccJapan1357 JP3,427.19413.67848.08Leveraged Inverse
ProShares UltraShort S&P500USSDS US1,270.59255.49831.38Leveraged Inverse
Direxion Daily Financial Bull 3x SharesUSFAS US1,537.70133.16828.34Leveraged
Direxion Daily Small Cap Bear 3x SharesUSTZA US664.08589.61737.05Leveraged Inverse
Samsung KODEX Inverse ETFSouth Korea114800 KS971.6176.99663.61Inverse
Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X SharesUSGUSH US456.83117.17593.98Leveraged
Direxion Daily MSCI Brazil Bull 2x SharesUSBRZU US20232.32475.82Leveraged
NEXT FUNDS Nikkei 225 Inverse Index ETFJapan1571 JP739.8914.53459.07Inverse
NEXT FUNDS Nikkei 225 Leveraged Index ETFJapan1570 JP2,003.721,130.75447.18Leveraged

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