Momentum flags rapid rise in leveraged ETF assets, warns daily rebalancing flows may amplify volatility

Reuters2026/07/27 08:29

By:Reuters

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Momentum Global Investment Management flagged rapid growth in leveraged ETF assets, shifting the segment from niche to one of the ETF market’s fastest-growing areas.
Rising use reflects demand for amplified exposure to major equity indices, technology stocks, and single names such as Nvidia and Tesla.
Daily rebalancing to maintain leverage can intensify trading flows in underlying securities and derivatives, amplifying market moves during volatility.
South Korea highlighted systemic effects, with leveraged ETFs exceeding 70% of June 2026 equity trading value in a USD 4.3 trillion market.
Regulators responded by suspending new single-stock leveraged ETF listings on July 16, 2026, tightening deposit rules, restricting product marketing.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Momentum Global Investment Management Ltd. published the original content used to generate this news brief on July 27, 2026, and is solely responsible for the information contained therein.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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Momentum flags rapid rise in leveraged ETF assets, warns daily rebalancing flows may amplify volatility

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