Investors lose $25bn in leveraged ETFs in sector's biggest meltdown

April 8, 2025-Risky funds drop almost a quarter of their value as Trump's trade war hits market
Investors lost $25.7bn in leveraged exchange traded funds late last week, in the biggest ever meltdown for risky funds that have drawn huge inflows in recent years from retail traders seeking quick returns.

The high-octane funds, which magnify the daily returns of individual stocks or indices by up to five times, lost almost a quarter of their value on Thursday and Friday as they were hit by Donald Trump's trade war and the unravelling of financial markets, according to calculations by FactSet.