U.S. leveraged ETF market exposure rises to $420 billion, adding over $100 billion in the past three weeks

Odaily reported that The Kobeissi Letter posted on X platform, stating that the market exposure of U.S.-listed leveraged ETFs has risen to $420 billion, the highest level since early July, with an increase of over $100 billion in the past three weeks. During the same period, assets under management (AUM) increased by approximately $40 billion to $180 billion.

It noted that the gap between AUM and market exposure stems from the leverage effect, with leveraged ETFs' actual market exposure currently standing at about 2.5 times their nominal AUM. At the current growth rate, both market exposure and AUM could potentially surpass the historical highs set in June this year as early as next month.