Big Take: Retail Investors Powering Boom in Leveraged ETFs

The video discusses the growth of ETFs over the past decade, highlighting the industry's expansion and the variety of options available, from conservative to high-risk leveraged ETFs. It emphasizes the risks associated with leveraged ETFs, particularly for retail investors seeking quick gains. The discussion covers market trends since March 2020, noting a shift in retail investment behavior and a decrease in the popularity of leveraged ETFs since the peak of Wallstreetbets and GameStop events. The video concludes with an outlook on the future of retail investing, suggesting that investors are becoming more educated and involved in the markets.

What is a key characteristic of leveraged ETFs that investors should be aware of?

• They are risk-free investments.

• They provide guaranteed returns.

• They are suitable for all types of investors.

• They can result in both amplified gains and losses.

How has the market behavior changed since March 2020 according to the transcript?

• The market has become less volatile.

• Investors are more cautious and prefer long-term investments.

• There is a higher demand for quick and substantial returns.

• Retail investors have stopped using ETFs.

What happened to the usage of leveraged ETFs during the WallStreetBets era?

• It decreased significantly.

• It peaked around the time of AMC's rise.

• It was unaffected by market trends.

• It remained constant.

What percentage of total ETF volume did leveraged ETFs make up at their peak?

• 25%

• 18%

• 10%

• 5%

What is the current percentage of leveraged ETFs in the total ETF assets?

• 10%

• 1%

• 15%

• 5%