Markets· August 17, 2026 at 04:03 a.m.
Competition Heats Up in Leveraged ETF Market as New Players Enter
Key takeaways
- New thematic ETFs are being targeted by leveraged and inverse versions
- Roundhill's Neocloud and Photonics & Optics funds are the latest targets
- Leveraged and inverse equity ETFs represent a small but growing slice of the market
A new trend is emerging in the Exchange-Traded Fund (ETF) market, as companies are launching leveraged and inverse versions of successful thematic ETFs. Recently, Rex Shares and Tuttle Capital Management filed for four such ETFs that would go either 2x long or 2x inverse on Roundhill's Neocloud and Photonics & Optics funds. Similarly, Roundhill also filed for its own 2x long version of LYTE. This strategy is becoming increasingly popular as traders seek leverage in new themes, but it may lead to a crowded market with limited assets.
