Clients Are Holding Highly Leveraged ETFs Way Too Long
Sometimes, you just have to let it go.
Leveraged exchange-traded products have been all the rage in recent months, with almost 60 new filings for funds that track companies like Google, Robinhood and Uber coming online in October alone. Total assets in leveraged US equity ETFs hit $125B as of Dec. 25, up from $106B at the end of 2024, according to Morningstar Direct. Across the pond, three of the top 10 most traded ETPs on the London Stock Exchange featured 3X leverage strategies, including the top traded fund in December: the Leverage Shares 3x Tesla ETP.
Now, a UK securities regulator is raising red flags. The Financial Conduct Authority recently released data on how the products are being used by advisors and retail investors…
