Leverage Shares ETF Draws $514M Flows with 0.75% Fee but Drops 41%
SPCH•Leverage Shares’ 2x Long SPCX Daily ETF has attracted $514 million since its June 15 launch by undercutting rivals with a 0.75% expense ratio. Despite leading inflows, SPCH fell 41% from June 15 to 26, trailing peers by a percentage point as swap financing costs boosted its true holding expenses.
1. Launch and Fee Advantage
Leverage Shares rolled out its 2x Long SPCX Daily ETF on June 15 with a 0.75% expense ratio, undercutting the next-cheapest options by 20 basis points among seven new leveraged SpaceX funds.
2. Inflows Outpace Rivals
SPCH attracted $514 million of investor inflows in its first two weeks, more than double the $194 million for ProShares Ultra SpaceX (SPCF), and now holds $409 million in assets compared with $107 million for SPCF.
3. Underperformance Highlights Hidden Costs
Despite leading in cost and assets, SPCH has plunged 41% between June 15 and 26, lagging peers by about one percentage point as undisclosed swap financing fees inflate total holding expenses.
