Investors lose $ 25 billion in investment funds circulating in the largest sector in the sector

Stay in view of the free updates

Simply subscribe to Exchange of money Myft Digest – it is delivered directly to your inbox.

Investors lost $ 25.7 billion of money traded on the stock exchange late last week, in the biggest collapse of the risky boxes that have drawn huge flows in recent years of retail selling traders looking for quick returns.

High -octane money, which amplifies the daily returns of individual shares or indicators for up to five times, lost nearly a quarter of its value on Thursday and Friday, where the trade war was hit by Donald Trump and the detection of financial markets, according to accounts according to FactSet.

This has been achieved the worst previous losses on the record, two separate specifications during the Covid-19 breakdown in March 2020 when the March investment funds lost $ 9.1 billion and $ 5.6 billion, respectively, and “Volmageddon” for the year 2018 when a significant increase in volatility led to significant losses in the short rituals.

Global stock markets declined over three days trading from Thursday to Monday after a wave of “mutual definitions” was manufactured against dozens of trade partners in the United States to line up on Wednesday.

These plans are in addition to a 10 percent global tariff announced on “Liberation Day” in Trump last week.

Losses confirm the risks of retail investors in the rapid growth sector, which has risen to more than 650 funds worldwide since their introduction in 2006.

“These products are very sharp knives,” said Elizabeth Kashner, director of international fund analyzes at FactSet. “They should be used for very specific purposes and the people who use them should know what they are doing.”

The largest loss rate by the Ireland’s financial leverage was the headquarters of the long long connections, which paid 59.1 percent over the two days, according to FactSet.

Three boxes of other stocks for profit – the wonderful 5x 7 and 3x Boeing and 3x ARM – lost more than 50 percent.

In terms of the dollar, the largest loser among the investment funds circulated in the field of investment funds circulated in the field of investment funds circulated in the United States of America UltraPro QQQ, based on the NASDAQ Technology Index, which lost $ 6.3 billion.

Cashner said: “It is all really related to semi -conductors and technology and the largest loss in the investment funds traded in one stock,” Kashner said. “Some did a great job to lose money.”

Although the United States has a large extent the largest market for investment funds circulating in the field of investment funds circulating, the financial lever has been covered in three times, which limits breakage losses. There is no suggestion that any of the circulating investment funds failed to act as intended.

Kenneth Lamont, director of research at Morningstar, said that retailers were particularly vulnerable to sharp losses from these high -risk products. He added: “They do not have all the advantages of a large institution and the opportunities in the lack of an advantage, so the presence of a product that allows them to write down three times on their bet, maybe it was not the best idea.”