Leveraged single stock ETF demand cools down

Demand for high risk leveraged single stock ETFs is showing signs of cooling amid shrinking fund sizes and rising closures. While some startups continue launching new products, analysts question the durability of the market.

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FILE PHOTO: A 3D printed word "ETF (Exchange-Traded Fund)" is seen in front of decreasing stock graph in this illustration taken October 16, 2025. REUTERS/Dado Ruvic/Illustration/File Photo

Demand for high-risk leveraged and inverse single-stock ETFs is cooling in the United States, with average fund sizes falling to $63.3 million. The pullback follows a record wave of new product launches targeting smaller and more volatile equities. Analysts question the durability of these speculative bets as saturation hits the market.

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