Leveraged semiconductor ETFs dominated buying and selling exercise in 2024, as traders sought amplified returns amid the tech sector’s rally.
The Direxion Each day Semiconductor Bull 3X Shares (SOXL) topped the record of most actively traded ETFs with a mean day by day quantity of 74.9 million shares, in keeping with information from Bloomberg that examined common year-to-date buying and selling quantity as of Dec. 30.
ProShares UltraPro QQQ (TQQQ), which affords triple leverage on the Nasdaq-100 index, ranked second with a mean of 57.8 million shares traded, adopted carefully by the SPDR S&P 500 ETF Belief (SPY) at 57.7 million shares, the info exhibits.
The heavy buying and selling in leveraged semiconductor and tech ETFs comes as traders poured over $1 trillion into U.S.-based ETFs in 2024, marking a report yr for the funding automobile amid the S&P 500’s 25% acquire.
The surge in buying and selling volumes for these merchandise highlights traders’ rising consolation with complicated ETF methods of their seek for higher returns.
The iShares China Massive-Cap ETF (FXI) noticed the fourth-highest quantity at 46.3 million shares yr so far, as merchants reacted to fluctuations and rising worries in China’s financial system.
Direxion’s 2X leveraged Tesla ETF (TSLL) rounded out the highest 5 with 42.7 million shares traded, capitalizing on the electrical automaker’s worth swings.
The Monetary Choose Sector SPDR Fund (XLF) averaged 40.7 million shares traded, as traders positioned for rate of interest strikes, the info reveals.
Lengthy-term Treasury ETF TLT, the iShares 20+ Yr Treasury Bond ETF, noticed volumes of 39.9 million shares yr so far, reflecting bond market exercise amid price uncertainty, in keeping with the info.
Bearish traders, in the meantime, drove 37.5 million shares in quantity for the Direxion Each day S&P 500 Bear 3X (SPXS), whereas the normal tech-focused Invesco QQQ Belief (QQQ) traded 37.1 million shares.
The Direxion Each day Semiconductor Bear 3X (SOXS), the inverse companion to top-ranked SOXL, accomplished the highest 10 with 36.7 million shares traded, highlighting how merchants performed either side of the semiconductor sector’s strikes.
