Leveraged ETFs have gained popularity this month with investors positioning themselves for amplified gains amid expectations of a market rebound following a sell-off triggered by U.S. President Donald Trump’s trade tariffs. 

According to LSEG Lipper data, leveraged equity ETFs have attracted $10.95 billion in inflows so far in April, surpassing a five-year high of $9.2 billion recorded last month. This marks the strongest monthly inflows since March 2020, when markets were roiled by COVID-19. 

Direxion Daily Semiconductor Bull 3x Shares SOXL became the most popular leveraged ETF this month, pulling in about $4.2 billion so far, per etf.com. ProShares UltraPro QQQ TQQQ has gathered $3.3 billion while Direxion Daily TSLA Bull 2X Shares TSLL and Direxion Daily S&P 500 Bull 3x Shares SPXL have seen inflows of $689.9 million and $408.2 million, respectively. 

Leveraged ETFs provide multiple exposure (2X or 3X) to the daily performance of the underlying index, making them a popular choice for investors looking to capitalize on short-term market moves without engaging in derivatives or futures. These offer a way to capture the whiplash of sentiment-driven markets.

Market Stabilizes

The announcement of a 10% universal tariff on imports, coupled with additional country-specific tariffs — most notably a 145% levy on Chinese goods — triggered a sharp market downturn earlier this month. Major indices like the S&P 500 and Dow Jones Industrial Average experienced substantial losses, entering bear market territory early in the month. However, the latest developments suggest a potential stabilization, leading to a modest stock recovery (read: 5 ETFs Scaling New Highs Amid Market Turmoil). 

Earlier this week, President Donald Trump indicated a potential reduction in the steep tariffs imposed on Chinese imports. At a White House press conference on Tuesday, Trump called the current 145% reciprocal tariffs "too high" and said they would "come down substantially." 

Treasury Secretary Scott Bessent echoed the sentiment, stating that the tariff standoff with China is "unsustainable" and expressed confidence that a deal between the two nations could eventually be reached. A Wall Street Journal report further intensified the situation, revealing that U.S. officials are considering reducing tariffs on China to 50–65% but are depending on China to lower its trade barriers.

Trump, who criticized Powell by calling him a “major loser,” clarified that he had no plans to oust him before his term ends in May 2026.

As trade tensions eased, Wall Street rallied for three consecutive sessions and is on course for another day of gains in pre-market trade today at the time of writing. Amid the three-day rally, the tech-heavy Nasdaq Composite index outperformed, rising more than 8%, followed by gains of over 6% for the S&P 500 and 5% for the blue-chip Dow Jones Index (read: Tariff Relief Talks Lift Tech ETFs, Stocks: What's Ahead?). 

Leveraged ETFs in Focus

Direxion Daily Semiconductor Bull 3x Shares (SOXL)

With AUM of $7.8 billion, Direxion Daily Semiconductor Bull 3x Shares targets the semiconductor corner of the technology sector with three times leveraged exposure to the NYSE Semiconductor Index. It charges 72 bps in fees per year and trades in an average daily volume of 298 million shares.

ProShares UltraPro QQQ (TQQQ)

ProShares UltraPro QQQ offers three times the leveraged exposure to the NASDAQ-100 Index. It has amassed $17.2 billion in AUM and trades in a heavy volume of 154.6 million shares, on average. It charges 84 bps in annual fees.

Direxion Daily TSLA Bull 2X Shares (TSLL)

With AUM of $3.8 billion, Direxion Daily TSLA Bull 2X Shares is by far the largest U.S.-listed single-stock ETF on the market. It offers two times (200%) the daily percentage change of the common stock of Tesla, charging 84 bps in annual fees. TSLL trades in a heavy volume of 241 million shares (read: Should You Buy Tesla ETFs Post Q1 Earnings Miss?). 

Direxion Daily S&P 500 Bull 3x Shares (SPXL)

Direxion Daily S&P 500 Bull 3x Shares creates a 3X long position in the S&P 500 Index with an expense ratio of 0.85%. It has AUM of $3.6 billion and trades in an average daily volume of nearly 9 million shares. 

Caveat!

As a caveat, investors should note that these products are extremely volatile and suitable only for short-term traders. Additionally, the daily rebalancing, when combined with leverage, may make these products deviate significantly from the expected long-term performance figures (see: all the Leveraged Equity ETFs here).

Yet, for ETF investors who are bullish on these sectors in the near term, any of the abovementioned products can be an interesting choice. A near-term long could be intriguing for those with high risk tolerance and a belief that the trend is a friend in this corner of the investing world.
 

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Direxion Daily S&P 500 Bull 3X Shares (SPXL): ETF Research Reports

ProShares UltraPro QQQ (TQQQ): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

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