The markets favorite boogeyman... or paper tiger? Leveraged ETFs despite the attn they receive only acct for 1-2% of ETF assets but.. they make up 10% of all ETF trading and 1/3 of all new launches (they all charge 1% so only need one hit to pay for many duds). However, if you adjust their aum for embedded leverage they have over $400b, but still, that is less than 1% the size of US equity mkt. In short, they are heavily used and talked about, but not that big a deal in grand scheme of things.. Good note on this from @psarofagis yest(Eric Balchunas)