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Analysis-US leveraged single-stock ETF boom may be cooling

Analysis-US leveraged single-stock ETF boom may be cooling

By Suzanne McGee

PROVIDENCE, RHODE ISLAND, Aug 25 (Reuters) – Red-hot demand for high-risk leveraged and inverse single-stock ETFs may be starting to cool.

The increasingly volatile bull market has fueled investor interest in finding ways to double the hoped-for gains in the market’s most popular and volatile stocks. As these speculative plays have multiplied — ‌accounting for as much as half of all new launches in June alone — market analysts are questioning the trend’s durability.

“The market for these is saturated and there’s ‌only so much money out there chasing this kind of product,” said Morningstar analyst Daniel Sotiroff. “A few firms at the top end up commanding the lion’s…

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