China's government just pumped 13.8 Billion Yuan ($2 Billion USD) into their largest ETF tracking semiconductor stocks, the fund's largest inflow in history
Bloomberg, Barchart
THIS IS HOW EXCESSIVE LEVERAGE AND SPECULATION END:
The SK Hynix long 2x Leveraged ETF, listed in Hong Kong, is down -64% from its June peak. SK Hynix shares have fallen more than -35% from their June peak. Source: Global Markets Investor
This is how leverage turns a pullback into a wipeout.
The 2x leveraged SK Hynix ETF listed in Hong Kong has plunged 64% from its June peak after SK Hynix shares fell more than 35%, including a record 15% one-day drop on Monday. Many South Korean retail investors rushed into these leveraged ETFs after their launch, expecting to amplify AI-driven gains. Instead, extreme volatility and daily rebalancing accelerated losses, with reports of forced liquidations already emerging. The lesson is simple: leverage doesn't just amplify returns—it magnifies mistakes. In volatile markets, it can destroy capital far faster than most investors expect. Source: Global Markets Investor
Inside $QQQM, Invesco's take on the Nasdaq-100
It holds around 100 of the largest nonfinancial companies listed on the Nasdaq, tilted heavily toward tech and growth names. $NVDA: 7.6% - designs the GPUs powering AI and gaming $AAPL: 7.3% - makes the iPhone, Mac, and a growing services business $GOOG/$GOOGL: 6.5% - runs Google Search, YouTube, and Google Cloud $MU: 4.9% - builds memory and storage chips for computers and data centers $MSFT: 4.7% - sells Windows, Office, and Azure cloud services $AMZN: 4.2% - runs the largest US online store plus AWS cloud $AMD: 3.8% - makes processors and graphics chips for PCs and servers $TSLA: 3.2% - builds electric vehicles and energy storage systems Source: ETF Investments
Leveraged ETFs are no longer a niche product.
US-listed funds now hold around $200 billion in assets, equivalent to roughly $400 billion of market exposure, while trading volumes are running about 50% above last year's record pace. Market structure increasingly matters. Source: TME, JP Morgan
The Memory ETF is now the fastest ETF in history to hit $10 billion, $15 billion, and $20 billion in assets under management.
Source: Charlie Belillo
Retail investors are piling into SpaceX at an UNPRECEDENTED pace:
The ARK Innovation ETF, $ARKK, recorded ~$7 billion in inflows in June, the largest in nearly a year, with the surge coinciding precisely with the day of the SpaceX IPO. Over the first 3 trading sessions following its IPO, retail investors purchased a net $369.8 million of SpaceX, $SPCX, according to Vanda Research. By comparison, retail investors purchased just $88.2 million of Nvidia, $NVDA, over the same time. SpaceX's 3-day retail purchases roughly matched the COMBINED total of Nvidia, Alphabet, Amazon, Microsoft, Meta, the S&P 500 ETF, $SPY, and the Nasdaq 100 ETF, $QQQ. The retail mania is unlike anything seen before. Source: Global Markets Investor, Bloomberg
FLOWMAGEDDON: ETF flows have touched $1 trillion YTD, and it's still June...
To be sure, a touch of this is S&P 500 rebalancing but it is looking pretty good that last year's $1.5T record will be broken. Amazing $DRAM is in top 10 overall. Even tho SpaceX has stolen all the attn DRAM is still top 5 story of year. Source: Bloomberg, Eric Balchunas
