Leveraged ETFs are in Free Fall

Wall Street’s newest roller-coaster trade, the leveraged single-stock ETF, is plunging

Investors who loaded up on funds that double down on their favorite stocks were rewarded with record highs. 

Now they are facing the downside. 

Funds that offer leveraged exposure to broad stock indexes have been offered in the U.S. for more than a decade. 

But leveraged single-stock ETFs, like those linked to MicroStrategy and Tesla, were first approved by regulators in 2022.  

The three largest single-stock funds give holders leveraged exposure to Nvidia, Tesla and MicroStrategy—a trio of stocks popular with the day-trading crowd. 

Wall Street Journal 20 March 2025

https://www.wsj.com/finance/investing/billions-flowed-into-new-leveraged-etfs-last-year-now-theyre-in-free-fall-0c413245