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What are leveraged ETFs and how are they driving the AI rally?
short by Neeraja Nath / on Thursday, 16 July, 2026
Leveraged ETFs use futures or swaps to replicate bet using borrowed money to amplify daily return target of underlying stock or index, often by two-three times. During AI boom, heavy inflows into leveraged ETFs tracking chipmakers such as Samsung Electronics and SK Hynix have forced fund managers to buy more shares as prices rise. This has, however, increased market volatility.
read more at Reuters