The Rally's Biggest Buyer Could Become The Next Crash's Biggest Seller

When the flow reverses

Markets spent years obsessing over option dealers and meme traders. Meanwhile, levered ETFs quietly grew into a $300+ billion ecosystem controlling more than $750 billion of equity exposure. The result: a growing pool of automatic buying on the way up—and automatic selling on the way down.

Everyone loves levered ETFs when markets grind higher. The next selloff could encounter a much larger mechanical seller than investors realize.