GRAPHIC-Leveraged equity ETF assets fall sharply, raising volatility concerns

Reuters
2026.02.06 15:19
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Global leveraged equity ETFs have seen a 7.2% decline in assets this February, totaling $146.7 billion, raising concerns about increased market volatility. This decline mirrors a significant drop in early 2025. Leveraged ETFs, which use derivatives to amplify returns, may exacerbate market selloffs by forcing funds to reduce exposure during downturns. Despite these risks, retail interest is growing, with a record 228 leveraged equity ETFs launched in the U.S. last year, significantly more than in 2024.