@KobeissiLetter•un'ora fa
The leveraged ETF market is seeing massive inflows.
US-listed leveraged ETF market exposure is up to $420 billion, the highest since early July.
Over the last 3 weeks, exposure has surged by more than +$100 billion.
At the same time, assets under management (AUM) have risen +$40 billion, to $180 billion.
The gap between AUM and exposure comes from leverage: a 2x ETF with $100 billion in assets creates $200 billion in market exposure, while a 3x ETF creates $300 billion.
This means the true market impact of leveraged ETFs is nearly 2.5x their headline AUM.
At this pace, both metrics will exceed their June all-time highs as early as next month.
There has never been more leverage in the market.
