Rising Interest in Leveraged ETFs Among Overseas and Domestic Investors
Last month, overseas investors showed significant interest in leveraged ETFs tracking semiconductor stocks and the Nasdaq-100 index. Direxion Daily Semiconductor Bull 3X Shares ETF (SOXL) and ProShares UltraPro QQQ ETF (TQQQ) were the most heavily purchased, reflecting a strong buying trend. This heightened focus also extends to individual big-tech stocks like Nvidia and Tesla, indicating a strong investment appeal tied to the global economic recovery and technology sector growth.
Meanwhile, domestic investors are also ramping up investments in leveraged ETFs that track U.S. stock indices. This move is viewed as part of a bargain-hunting strategy in light of potential tariff policy relaxation under President Trump's administration. Key ETFs in focus include Direxion Daily Semiconductor Bull 3X Shares ETF, ProShares UltraPro QQQ ETF, and Direxion Daily Tesla Bull 2X Shares ETF. However, caution is advised due to the uncertainties linked to Trump's unpredictable negotiation tactics, despite potential progress in tariff negotiations.
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