Eric Balchunas Says Leveraged ETFs Generated $66 Billion in Cash for Traders

Bloomberg ETF analyst Eric Balchunas said leveraged ETFs have generated $66 billion in cash for traders who used them, after he calculated the results of these products since launch. According to Odaily, Balchunas wrote on X that he initially planned to measure how much cash leveraged ETFs had consumed and compare it with $750 billion in losses attributed to actively managed mutual funds due to poor performance, but his calculations showed the opposite outcome. Balchunas said many leveraged ETFs, including TQQQ, have risen as much as 38,000% while still seeing outflows, which he attributed to traders taking profits. He added that the figures account for volatility drag and include -2x funds.