Eric Balchunas: Leverage ETFs account for 13% of ETF trading and 1% of assets

Eric Balchunas: Leverage ETFs account for 13% of ETF trading and 1% of assets
Leverage ETFs see surge in volume

Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, discusses the dynamics of leverage ETFs, noting that they represent 13% of ETF trading volume while making up only 1% of assets under management.

He observes that volume in these products has increased tenfold in five years, and that a 2x stock long/short ratio is now at 19x, concentrated mainly in chip and tech sectors, which could potentially worsen a market selloff. Balchunas debates these trends alongside other market analysts.

Balchunas has previously reported on the end of Invesco’s 27-year control over the Nasdaq index in recent market coverage. He has also questioned the credibility of Grantham’s bitcoin skepticism, citing a series of inaccurate historical forecasts in earlier analysis. These reports provide additional context for Balchunas’s ongoing examination of ETF trends and market commentator views.

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