Investors who bet big on tech stocks rebounding from a tough July are seeing their money evaporate in the current meltdown.
A Bloomberg analysis of certain leveraged tech exchange-traded funds (ETFs) showed that money poured into them as tech stocks wobbled last month. Those bets have proved painful amid a selloff following last Friday’s weaker-than-expected jobs report, which fueled fears of a coming recession.
The Direxion Daily Semiconductor Bull 3x Shares (SOXL) brought in a record $2.8 billion last month, according to Bloomberg. The fund seeks daily returns, before fees and expenses, that are three times the performance of the New York Stock Exchange Semiconductor Index. Its shares at Monday’s close had fallen about 60% from their recent peak on July 10.
The ProShares UltraPro QQQ (TQQQ) took in $830 million in July, the most of any month since 2022, and more than $400 million in the first few days …