No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Wednesday, October 1, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Market Research Markets

Retail rush into speculative ETFs may be flashing market warning

by TheAdviserMagazine
1 month ago
in Markets
Reading Time: 2 mins read
A A
Retail rush into speculative ETFs may be flashing market warning
Share on FacebookShare on TwitterShare on LInkedIn


There’s worry retail investor exuberance in the exchange-traded fund space is flashing a warning signal for markets.

As individuals pour billions of dollars into some of the riskiest pockets of the exchange-traded fund market, some experts like ETF Action’s Mike Akins question whether the trend is a sign of markets overheating.

“Product proliferation in the ETF market is at its all-time high right now,” the firm’s founding partner told CNBC’s “ETF Edge” this week. “We are seeing signs of all of those types of niche strategies, especially in the thematic and innovative space, starting to approach 2020, 2021 types of flows again, right at the top of the market.”

Institutional investors make up roughly 64% of the overall ETF market, recent 13F filings compiled by ETF Action show. By contrast, they are largely absent from fast-growing categories like single-stock ETFs and leveraged or inverse strategies, making up approximately 9% and 10% of investors there, respectively.

Nontraditional ETFs, which include inverse and leveraged funds, have raked in more than $60 billion year to date, ETF Action data shows as of Friday. According to Akins, the few institutions involved in these speculative strategies are largely there to provide liquidity rather than to allocate.

“These strategies are incredibly volatile. They’re 99% owned by retail. There are no institutions allocating these strategies, but there’s billions of dollars coming into them,” he added.

Yield-focused products, such as covered call ETFs tied to individual stocks, are particularly risky, Akin contends. While they may generate steady income when underlying shares are rising, the payouts can become unsustainable if the stocks falter.

‘It’s a train wreck’

“If you have a yield-covered strategy that’s paying out 100% income on an annual basis and the underlying doesn’t keep going up, it’s a train wreck,” he said.

Retail appetite for these funds harkens back to the pandemic-era surge in thematic ETFs including Ark Innovation (ARKK), which saw massive retail-driven inflows at the height of the bull market. The historical parallels should give investors pause, Akin says.

“When you start seeing the flows into those products take off, generally, that is a contrarian signal that we’re overheating across the market, and that’s been shown time and time again in terms of money flows chasing returns.”

Disclaimer



Source link

Tags: ETFsFlashingmarketRetailrushspeculativewarning
ShareTweetShare
Previous Post

Back to School Finds on Etsy: Monogrammed Storage Pouch for only $6.82 shipped, plus more!

Next Post

Dream Pairs Women’s Slippers only $32.75 shipped!

Related Posts

edit post
AI Agents Have Entered the Real World

AI Agents Have Entered the Real World

by TheAdviserMagazine
October 1, 2025
0

Last week, we talked about how agentic AI is finally getting to work. AI agents are now starting to plan, reason...

edit post
From /Hour to M+ in Real Estate by Doing This

From $10/Hour to $1M+ in Real Estate by Doing This

by TheAdviserMagazine
October 1, 2025
0

Brittany Arnason bought her first rental property in a small town while making $10/hour as a waitress. She was doing...

edit post
Find an Authentic yet Modern Escape in Durango, Mexico

Find an Authentic yet Modern Escape in Durango, Mexico

by TheAdviserMagazine
October 1, 2025
0

Oliver Alexander Anderson Huerta / Shutterstock.comNestled in a high valley in Mexico’s pine-studded Western Sierra Madre range, the city of...

edit post
6 Things You Can Get for Free at Grocery Stores

6 Things You Can Get for Free at Grocery Stores

by TheAdviserMagazine
September 30, 2025
0

Drazen Zigic / Shutterstock.comConsumers are still feeling the pinch at grocery stores, so it can feel extra good to get...

edit post
NKE Earnings: Nike Q1 2026 profit drops, but beats estimates

NKE Earnings: Nike Q1 2026 profit drops, but beats estimates

by TheAdviserMagazine
September 30, 2025
0

Sneaker giant NIKE, Inc. (NYSE: NKE) reported a decline in earnings for the first quarter of fiscal 2026. Meanwhile, the...

edit post
Warren Buffett is reportedly eyeing Berkshire Hathaway’s biggest deal in three years

Warren Buffett is reportedly eyeing Berkshire Hathaway’s biggest deal in three years

by TheAdviserMagazine
September 30, 2025
0

Warren Buffett speaks during the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska, on May 3, 2025.CNBCWarren Buffett's Berkshire Hathaway...

Next Post
edit post
Dream Pairs Women’s Slippers only .75 shipped!

Dream Pairs Women's Slippers only $32.75 shipped!

edit post
Why Fed chief Powell’s rate cut signal lifted our non-tech stocks the most

Why Fed chief Powell's rate cut signal lifted our non-tech stocks the most

  • Trending
  • Comments
  • Latest
edit post
What Happens If a Spouse Dies Without a Will in North Carolina?

What Happens If a Spouse Dies Without a Will in North Carolina?

September 14, 2025
edit post
California May Reimplement Mask Mandates

California May Reimplement Mask Mandates

September 5, 2025
edit post
Who Needs a Trust Instead of a Will in North Carolina?

Who Needs a Trust Instead of a Will in North Carolina?

September 1, 2025
edit post
Does a Will Need to Be Notarized in North Carolina?

Does a Will Need to Be Notarized in North Carolina?

September 8, 2025
edit post
DACA recipients no longer eligible for Marketplace health insurance and subsidies

DACA recipients no longer eligible for Marketplace health insurance and subsidies

September 11, 2025
edit post
‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

September 9, 2025
edit post
Shutdown, Clampdown, Clownshow or Horror Movie?

Shutdown, Clampdown, Clownshow or Horror Movie?

0
edit post
XRP Flips Green For First Time Since 2017, Pundit Predicts 500% Rally

XRP Flips Green For First Time Since 2017, Pundit Predicts 500% Rally

0
edit post
How to build confidence in your financial life

How to build confidence in your financial life

0
edit post
LVMH: Top-Analystenhäuser heben die Daumen!

LVMH: Top-Analystenhäuser heben die Daumen!

0
edit post
AI godfather warns humanity risks extinction by hyperintelligent machines with their own ‘preservation goals’ within 10 years

AI godfather warns humanity risks extinction by hyperintelligent machines with their own ‘preservation goals’ within 10 years

0
edit post
AI Agents Have Entered the Real World

AI Agents Have Entered the Real World

0
edit post
Shutdown, Clampdown, Clownshow or Horror Movie?

Shutdown, Clampdown, Clownshow or Horror Movie?

October 1, 2025
edit post
XRP Flips Green For First Time Since 2017, Pundit Predicts 500% Rally

XRP Flips Green For First Time Since 2017, Pundit Predicts 500% Rally

October 1, 2025
edit post
AI godfather warns humanity risks extinction by hyperintelligent machines with their own ‘preservation goals’ within 10 years

AI godfather warns humanity risks extinction by hyperintelligent machines with their own ‘preservation goals’ within 10 years

October 1, 2025
edit post
AI Agents Have Entered the Real World

AI Agents Have Entered the Real World

October 1, 2025
edit post
LVMH: Top-Analystenhäuser heben die Daumen!

LVMH: Top-Analystenhäuser heben die Daumen!

October 1, 2025
edit post
Meet the end-of-life planning startup co-founded by NBA All Star Russell Westbrook

Meet the end-of-life planning startup co-founded by NBA All Star Russell Westbrook

October 1, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • Shutdown, Clampdown, Clownshow or Horror Movie?
  • XRP Flips Green For First Time Since 2017, Pundit Predicts 500% Rally
  • AI godfather warns humanity risks extinction by hyperintelligent machines with their own ‘preservation goals’ within 10 years
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.