Hundreds of Billions Flow Into Leveraged ETFs as Regulators Hit the Brakes
Leveraged ETFs have sucked in hundreds of billions this year, driven by issuers chasing high fees and traders hunting quick gains. Yet volatility decay erodes returns, and the SEC recently froze new filings of products with more than double exposure, signaling regulatory backlash. Investors face a lure‑and‑risk paradox that could reshape the ETF landscape.