This surge in retail risk-taking contrasts with institutional defensive shifts reported by Goldman Sachs, which noted hedge fund net leverage fell to 43.7%, the largest weekly decline since April 2025. Net positioning for these funds has reached the 0th percentile over one and five year periods, while momentum ETFs saw $5.1B in September outflows. Goldman Sachs warned that a general sentiment indicator at the 46th percentile, the lowest since April, could amplify market volatility if conviction shifts.
Tuesday, October 20, 2026
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Leveraged ETFs Draw Record $9.5B for Chip Bets as Hedge Funds Exit AI
US Markets1 day ago
Retail investors poured a record $7B into a triple leveraged semiconductor ETF last week as they bet on a recovery in the chip sector. Total inflows into leveraged long ETFs reached a historic $9.5B over the same period, with the majority of capital targeting semiconductor stocks even as hedge funds reduced their exposure to artificial intelligence assets at a record pace.
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