Leveraged ETFs are now driving markets. Leveraged ETFs now account for a record 16% of total global ETF daily trading value. This is despite representing only ~$250 billion, or 1%, of the total ~$22 trillion global ETF industry. This comes as 30-day average trading volume in leveraged ETFs has tripled since January, to a record ~$70 billion in June. Furthermore, long-leveraged ETFs are seeing ~$43 billion in average daily turnover, compared to ~$18 billion in short-leveraged funds. Meanwhile, AI-related long-leveraged ETFs now account for a record 58% of total exposure across long-leveraged ETFs, up from 26% in 2022. Among single-stock long-leveraged ETFs, memory stocks alone account for 48% of total exposure. This market is seeing massive amounts of leverage.(The Kobeissi Letter)