Invesco QQQ Trust, Series 1 (QQQ) and ProShares UltraPro QQQ (TQQQ) have seen big inflows. Retail traders are betting on a Nasdaq rebound after a sharp drop due to tariff worries. TQQQ, a leveraged ETF, got $7.1 billion in inflows since February.
If you aggregated all tactical allocation funds’ holdings as of 3/31/15, invested in index funds/ETFs corresponding to their weights in the major asset classes, and left them untouched for a decade, you’d have made 2x what the funds actually did. More here https://t.co/zangS3a3Y8
— Jeffrey Ptak (@syouth1) April 15, 2025
$3.1 billion came in after former President Trump’s April 2 tariff news. The ETF had a wild ride, falling 57% before bouncing back 30%. This shows the high volatility traders jumped into.
27 of 38 Defiance ETFs had lost money since incept through last Friday. Average cumulative return = -14.9%, median return = -12.0%. This includes all their dead ETFs. S&P gained 113% cumulative since incept of first Defiance ETF in July 2018. pic.twitter.com/SMVbARKxL9
— Jeffrey Ptak (@syouth1) April 14, 2025
The Nasdaq 100 Index sold off hard in April on new tariff fears. This pushed retail traders to take more risk by putting lots of money in ultra-leveraged tech ETFs. The Invesco QQQ Trust, Series 1, the biggest ETF tracking the Nasdaq 100, took in $4.44 billion last Thursday.
Finally some good news in the ETF flows for the bears/pessimists, as group they saw $6b in outflows yesterday as $VOO took the day off, and $BIL at top spot is gloomy. It's just one day tho and very at odds with 1W, 1M pic.twitter.com/OxIxnCY8vV
— Eric Balchunas (@EricBalchunas) April 15, 2025
That was its biggest one-day inflow since March 2021. ProShares UltraPro QQQ (TQQQ) has become a top choice for traders buying the dip. ETF.com’s senior analyst Sumit Roy says risk-loving traders still like the ETF a lot.
Even with its big drop from February to early April, traders kept putting money in TQQQ. Inflows show a strong desire for leveraged risk in a choppy market.
Betting on tech sector volatility
The ETF’s short-term performance shows this risk appetite. On April 3, TQQQ dropped 16%. It lost another 18% on April 4.
But just days later, it jumped 35%. From its April 9 low, TQQQ has climbed nearly 30%. But it’s still 45% below its February high.
This looks like the 2022 bear market. The Nasdaq 100 fell 35% as the Fed hiked rates fast. TQQQ lost 80%.
But those who bought the bottom saw a 477% rally from the 2022 low to the December 2024 peak. Roy noted TQQQ’s potential for big gains and its built-in volatility. He said despite broad economic worries tied to tariffs, many traders aren’t scared off.
Recent inflows hint that investors will ride out market swings in hopes of big returns. The key point is investors are ready to handle market ups and downs. They’re betting on a big upside in the volatile tech sector.
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