Momentum Global flags surge in leveraged ETF AUM, warns of volatility-amplifying rebalancing flows
SPY•Leveraged ETF assets rise rapidly
- Momentum Global flagged rapid growth in leveraged ETF assets, shifting the products from a niche segment into a mainstream vehicle for tactical equity exposure.
- Rising assets increase daily rebalancing flows, which can amplify market moves in underlying securities and derivatives during volatility.
South Korea example highlights spillover risk
- South Korea showed the spillover risk in June 2026, with leveraged ETFs, Samsung Electronics and SK Hynix exceeding 70% of trading value.
- South Korea’s Financial Services Commission suspended new single-stock leveraged ETF listings on July 16, 2026 amid volatility concerns.
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