Risk appetite is skyrocketing: Assets under management (AUM) in US leveraged ETFs are up to a record $177 billion. Since the March bottom, total leveraged ETF AUM has surged +$45 billion. Tech-oriented ETFs account for the majority of total AUM, at ~69% This comes as technology AUM stands at $65 billion, followed by semiconductors at $32 billion, and the Magnificent 7 at $25 billion. Furthermore, leveraged ETF AUM linked to the S&P 500 is $24 billion. To put this into perspective, total leveraged ETF AUM was just ~$30 billion in 2020. Investors are piling into leveraged funds at a record pace.(The Kobeissi Letter)