Skip to content

Booming ETFs That Worry Wall Street Watchdogs Rake In Billions

  • ETFs that could be deemed “complex” by regulators are growing
  • Allocators navigate rout in everything from rates to stocks

Traders are splurging billions of dollars on “complex” ETFs to ride out the crushing bear market across assets -- just as Wall Street watchdogs threaten intrusive measures to limit retail participation. 

Issuers including ProShares Advisors LLC, Direxion and Innovator ETFs have been flooded with nearly $24 billion of inflows this year into these typically derivatives-powered exchange-traded funds. Investors are navigating the crash in everything from stocks and crypto to fixed income by using the ETFs to bet on more pain or to nab outsize returns during market rebounds.