2024 saw record inflows into ETFs, driven by the growing trend of 'retailization' in trading. Retail investors are increasingly turning to ETFs, particularly those offering leverage, to gain exposure to popular tech stocks. Single-stock ETFs have exploded in popularity since their approval in the US, allowing traders to bet on specific companies like Nvidia, Tesla, and Coinbase with amplified returns (or losses).
2024 was a record year for
s Since the SEC approved the first single-stock format, usually with two times leverage. This means that if, for example, Nvidia is up 1% in a single day, the s, again in many cases 2x inverse, meaning if Nvidia is down 1% on that day, the s was $500 million. On January 2nd of this year, we did $7.3 billion," Todd Sohn, head of
s are short-term traders who turn over the assets on a near-daily basis and could care less about the fees or a daily reset. This is part of the increasing "retailization" of trading, the rise of self-directed investors, not just in the U.S. but globally, These people seek out the most volatile stocks and want want to trade them with leverage. And the client is increasingly international. "You have a generation of retail investors around the world that want access to U.S.
s. Of that $10 billion, he said, 30% turns over every day. "That tells you that the vast majority are holding these very short-term, which is the correct way to use these instruments," he said. 24 hour trading This demand for U.S. tech stocks is tied in with a related story: the move toward global trading, or at least global trading of U.S. stocks.
in December, which generates income by selling puts on Tesla. He is expecting the first distribution in mid-January. Where is this going? Sohn, head of
Etfs Retail Investors Tech Stocks Volatility Leverage Single-Stock Etfs
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