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Leveraged ETFs drive record share of US ETF trading volume, IEX finds
Leveraged and inverse funds were about 16% of traded value across the 100 most active ETFs on Monday, led by semiconductor 3X products SOXL and SOXS.
ETFs recently hit a record for trading volume share, with ETF volume accounting for 27.6% of total market volume, according to data cited by IEX and summarized by Yahoo Finance. The figure marks a sharp rise from the period when ETF volume had been stuck in the high teens to low 20s as a percentage of trading.
Yahoo Finance reports that the jump is being driven less by traditional buy-and-hold index funds and more by leveraged ETFs. IEX data show leveraged products account for roughly 40% of total ETF trading volume and that seven of the ten most active ETFs carry leverage.
The article notes that leveraged ETFs are a small part of the market by assets, holding about $175 billion, roughly 1.0% of the $15.6 trillion in U.S. ETF assets. It also flags that the measure may look more lopsided on a share-count basis because leveraged funds tend to trade at lower prices with faster turnover.
On Monday, Yahoo Finance says leveraged and inverse funds made up about 16% of traded value across the hundred most active ETFs, with Direxion Daily Semiconductor Bull 3X Shares (SOXL) trading about $7.8 billion and ranking third by dollar value, and Direxion Daily Semiconductor Bear 3X Shares (SOXS) trading about $2.9 billion and ranking ninth. The piece adds that SOXL and SOXS traded more dollars than VOO, which traded about $2.7 billion, while only SPY and Invesco QQQ Trust (QQQ) were more active by dollar value, at around $19 billion each.