Retail investors dominate trading in leveraged single-stock ETFs as market speculation grows
Individual investors now account for nearly 90 percent of trading in leveraged single-stock ETFs. This surge reflects a growing appetite for market volatility.
Insights:
A new study co-authored by Direxion, Vanda Research, and The Compound Insights has found that nearly 90% of trading in leveraged single-stock ETFs in the US 
US is attributable to individual retail investors. Released on February 24, 2026, the report indicates that trading in these specific products now accounts for approximately 8% of total trading volume on U.S. exchanges. This high concentration of retail activity has emerged alongside a period of rapid product launches and renewed regulatory filings within the financial industry.
US is attributable to individual retail investors. Released on February 24, 2026, the report indicates that trading in these specific products now accounts for approximately 8% of total trading volume on U.S. exchanges. This high concentration of retail activity has emerged alongside a period of rapid product launches and renewed regulatory filings within the financial industry.The research, which utilized data from Morningstar and Morningstar Direct, documents a 29% annual growth in leveraged ETF trading. There are currently 355 leveraged single-stock ETFs listed, with the majority having been launched since January 2025. This expansion has been particularly notable in products linked to major firms such as NVIDIA Corporation and Palantir Technologies Inc. , as individual investors seek geared exposure to popular equities.
