Investors are increasingly betting on a rebound in U.S. tech stocks, with record funds flowing into leveraged ETFs tracking the Nasdaq 100 Index. Recently, ProShares UltraPro QQQ (TQQQ, Financial), an ETF offering triple leverage on the Nasdaq 100, saw an unprecedented $1.5 billion inflow in a single day, marking its largest ever.
TQQQ, launched by ProShares in 2010, aims to provide triple the daily performance of the Nasdaq 100. Despite a brief surge of over 4.4% in the Nasdaq 100 and nearly 13.5% in TQQQ, both indices closed significantly lower, with the Nasdaq 100 down 1.95% and TQQQ dropping by 5.7%.
Amidst the turmoil caused by trade policies, the Nasdaq 100 has declined over 19% year-to-date, while TQQQ has fallen more than 50%. Nevertheless, investors have continued to pour over $3 billion into TQQQ this year, reflecting a high-risk appetite despite market uncertainties.
Additional signs of risk-taking include significant inflows into Direxion's triple-leveraged semiconductor ETF (SOXL), which attracted over $2.4 billion in April despite a 48% drop this month. Leveraged funds tracking NVIDIA and Tesla also received substantial investments.
