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Bloomberg ETF Analyst: Leveraged ETFs Have Generated $66 Billion in Cash for Traders
Svmuu News: Bloomberg ETF analyst Eric Balchunas posted on X that he had originally planned to examine how much cash leveraged ETFs had consumed since their launch and compare that figure to the $750 billion in losses incurred by actively managed mutual funds due to poor performance, but after running the numbers, he found that these products have actually generated $66 billion in cash for the traders using them. Many leveraged ETFs, such as TQQQ, have risen as much as 38,000%, yet they still experienced outflows, meaning traders were taking profits; this data has been adjusted to account for volatility and includes -2x funds.
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