ETFs & Mutual Funds
Leveraged Tech Bets Get Crushed After Drawing In Billions
- Buying the dip backfires on investors as slide deepens
- SOXL sees record weekly inflow, down 37% in past 14 days
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Buying the dip has been a winning strategy during the recent epic AI-fueled rally in technology shares. It’s backfired this week — and is especially excruciating for those who used amped-up wagers to amplify returns.
A batch of tech-centered leveraged exchanged-traded funds — designed to generate double or triple the daily move of underlying securities — scored double-digit losses after a market rout hammered stocks tied to the frenzy in artificial intelligence. The Nasdaq 100 tumbled 3.7% Wednesday and notched its worst day since October 2022.