An Explosion in Leveraged ETFs
- There were 725 leveraged ETFs listed on U.S. exchanges as of 6/30/2026. This was over double the 345 leveraged ETFs in June 2025.
- In June 2026, there were 102 leverage ETFs launched on U.S. exchanges. This was nearly triple the 38 launches in May 2026, which had been the previous all-time high for one month.
2x and 3x Leveraged ETFs Dominate the Space
- There were $101.68 billion of net assets in triple-leveraged ETFs on 6/30/2026, which was the most of any leverage bin. With $203.37 billion in incremental notional exposure through the use of leverage, these ETFs had a gross notional exposure of $305.05 billion.
- Double-leveraged ETFs had $87.66 billion in net assets, which was increased to $175.31 billion in gross notional exposure through the use of $87.66 billion in leverage.
ETFs Focusing on Tech Indices Dominate the Leverage Space
- There are two leveraged ETFs that have net assets far greater than any of their peers: ProShares UltraPro QQQ (TQQQ) and Direxion Daily Semiconductor Bull 3X ETF (SOXL).
- TQQQ had net assets of $37.29 billion, the most of any leveraged ETF. Since it utilizes three-times leverage, it had incremental notional exposure of $74.57 billion.
- SOXL had net assets of $28.03 billion and incremental notional exposure of $56.05 billion.
- The double-levereraged ETF with the most net assets was the ProShares Ultra QQQ (QLD), with $13.87 billion in both net assets and incremental notional exposure.
Total Gross Notional Exposure Nears Half a Trillion
- The total gross notional exposure for U.S.-listed leverage ETFs totaled $486.86 billion in June 2026, which was an all-time high. Of this, $291.14 billion was incremental notional exposure, while $195.78 billion came from net assets.
A Turnaround in the Share of ETFs that are Leveraged
- In April 2010, 15.90% of all ETFs were leveraged, which was the high for the period from June 2006 to June 2026. This share slid downward to 6.37% in January 2024 as low-cost index-tracking ETFs came to market.
- Recently, leverage ETFs have had a rapidly increasing share of the total ETF space. By the end of June 2026, 13.50% of ETFs were leveraged.
A Record MoM Increase in Margin Debt
- According to FINRA, the total amount of debt held in its customers’ securities margin accounts was $1.416 trillion in May 2026.
- This was a month-over-month increase of $111.28 billion, which was the largest monthly increase over the period from January 2000 to May 2026.
Margin Debt as a Share of S&P 500 Market Cap Could Sooth Worries Regarding Overleverage
- Margin debt at FINRA was 2.10% of the market of the S&P 500 in May 2026.
- This recent reading was below the monthly average of 2.25% for the period from January 1997 to May 2026, but this measure has been trending upward since it bottomed in September 2024 at 1.61%.
