Tech-Focused Leveraged ETFs Reveal Market Recovery Bets
- Tech-focused leveraged ETFs are dominating April fund inflows amid tariff turmoil.
- SOXL leads with $4.3 billion of monthly inflows despite a 42% performance drop.
- Inverse and bond ETFs are seeing outflows as investors position for a potential rebound.
Leveraged ETFs tracking semiconductor and tech stocks have attracted billions in inflows over the past month despite steep performance declines, according to data from the etf.com Pulse Tool.
The surge in flows to leveraged, bullish ETFs comes as investors position for a potential market recovery following President Donald Trump's 90-day pause on tariffs, demonstrating how traders use these high-risk funds to amplify returns in a volatile market environment.
SOXL Leads Among Bullish Bets
The Direxion Daily Semiconductor Bull 3X Shares (SOXL) topped the list with $4.3 billion in inflows over the past month, according to etf.com data. This massive influx occurred despite the fund's 43% loss during the period.
The ProShares UltraPro QQQ (TQQQ), offering three times leveraged exposure to the NASDAQ-100 index, attracted $2.9 billion in monthly inflows, according to etf.com. The fund has lost 21% over the past month.
The inflows come as the broader market has struggled, with major indexes dropping after President Trump escalated the global trade war on April 2.
Source: etf.com Pulse tool
ETF Pulse is a tracking tool designed to provide investors with insights into the top trending ETFs based on fund flows and performance metrics. ETF Pulse offers a platform to monitor, analyze and capitalize on market trends. Give it a try right here.
Flows Reveal Investor Sentiment
The ProShares UltraPro Short QQQ (SQQQ), which provides triple inverse exposure to the NASDAQ-100, saw more modest inflows of $400.8 million over the past month, according to etf.com data. Unlike its bullish counterparts, SQQQ showed better performance with a monthly decline of just 2.8%.
On the outflow side, the ProShares Ultra QQQ (QLD), offering two times leveraged exposure to the NASDAQ-100, experienced $546.5 million in outflows over the past month, according to etf.com data. QLD posted a 12% decline during this period.
The ProShares UltraShort Bloomberg Natural Gas (KOLD), which provides daily double inverse exposure to natural gas futures, saw $339.7 million in monthly outflows despite gaining nearly 43% over the same period.
The Direxion Daily 20+ Year Treasury Bull 3X Shares (TMF), which provides triple leveraged exposure to long-dated Treasury bonds, experienced $180.3 million in outflows over the past month, according to the data. TMF declined 6% during this period.
Year-to-date fund flows show a similar pattern, with SOXL and TQQQ attracting $4.7 billion and $4.6 billion, respectively, according to etf.com. This ongoing investor interest comes despite their steep losses of 56% and 34% over the same period.
