Spend some time searching in trading volumes, and you will notice something interesting: many investors are recently making big bets in the stock market.

Most of them are long bets, but some are short.

It is easy to see this because there is a growing segment of ETF business that meets the needs of investors who want to make short -term bets in the stock market.

These are the investment funds circulating in the field of investment funds circulating. Investment funds circulating in the field of investment funds are inflating the daily revenues of the index or shares using financial derivatives. For example, if an indicator rises by 1 % a day, the ETF 2X will achieve 2 % return, 3X will provide 3 % return.

ETF presents the opposite daily performance. So the 2X ATF ETF has decreased by 2 % on the day when the index increased by 1 %, and vice versa.

These investment funds circulated in these assets not only grow in assets. They have become a greater part of the daily trading volume of ETF, which has become a larger part of total trading.

Who uses these products? It has a great relationship with the general rise in the behavior of speculation in the market. Trading in options, bitcoin and other speculative products increased.

“We do not continue to see more investors tend to benefit from this as a means of expressing short -term views in the market, and given all the fluctuation, Douglas Yunns, CEO of Direxion, one of the largest investment fund providers circulating in the field of investment funds circulated in the field Investment funds (CNBC).

The first/reverse interior investment funds in the United States began in 2006, and long or short bets allowed indexes such as S&P 500 or NASDAQ 100. The investment funds circulated in Nasdaq 100 have appeared.

The largest, Proshaaresultrapro QQQ (TQqq), which provides 3X exposure to benefit from Nasdak 100 (QQQ), has approximately $ 26 billion in assets. Investment funds with a single stock that benefit Nafidia and Timing It also now has great assets.

The largest Investment/reverse investment funds

(Management assets)

Proshaaresultrapro QQQ (TQQQ) $ 25.7 billion

Direxion Daily Semiconductor Bull 3X (SOXL) $ 8.5 billion

Prosthares Ultra QQQ (QLD) $ 7.9 billion

Prosthares Ultra S & P 500 (SSO) 5.5 billion dollars

Direxion Daily S & P Bull 3X (SPXL) $ 5.0 billion

Direxion Daily TSLA Bull 2x (TSLL) $ 3.5 billion

Graniteshares 2x Long Nvda (NVDL) $ 4.2 billion

Part of this is the effect of the bull market: the stocks have increased useful in the past few years, so the total assets are higher. However, the investment funds circulated in these investment/reverse funds are not just increasing assets, but have become more part of the ETF world.

In 2016, when ETFS had about $ 2 trillion of management assets (AUM), investment funds circulated in the field of benefit/reverse were about 2 % of AUM, according to strategies.

Today, the investment funds circulating contain about 11 trillion dollars in management assets, but the investment funds circulated in the field of benefit/reverse constitute about 81 billion dollars of that, or nearly 8 % of the AUM total.

“I think there is an impact on generations on play, and I think there is a great appetite among younger traders who want to play with leverage because of the gains that you can provide,” Tod Son, head of the investment funds circulating in strategies, told CNBC. “The barriers are very low, you can buy these products on your phone.”

Yones estimated that 75 % of the ownership of these products were retail traders, 25 % of the institutions, which included hedge funds, trade offices, large brokerage firms, and “anyone who has a book of positions wants to be neutral in the market.”

A small but important percentage of retail merchants (12 % -15 % of the total) was from outside the United States, which is in line with previous reports on growth The demand for trading 24 hours Partially comes from retail traders in South Korea, Japan and Europe.

Investment funds circulating in the field of excessive investment funds and leverages, including the trading investment funds with a single stock, routinely, routinely among the most traded investment funds on a daily basis.

There is a simple way to consider this according to the average daily size of the dollar, which is the total amount of money circulating in ETF on a daily basis.

The investment funds circulated in all investment funds circulated throughout the daily dollar are still linked to the largest indexes, especially the S&P 500, Russell 2000 and NASDAQ 100.

The highest investment funds circulated in the average daily dollar size for 3 months

SPDR S & P 500 (SPY) 27.7 billion dollars

Investco QQQ (QQQ) 15.3 billion dollars

Ishaares Russell 2000 (IWM) $ 5.7 billion

Core S & P 500 (IVV) stocks 3.9 billion dollars

Source: Strategic

However, the fifth largest ETF according to the average daily dollar size in the past three months is Prostharesultrapro QQQ, which provides exposure for three times to take advantage of NASDAQ 100.

In general, five of the best 20 boxes are used in the average daily dollar size.

Investigative/reverse investment funds: the largest average. Daily dollar size for 3 months

Proshaaresultrapro QQQ (TQQQ) $ 3.8 billion

Direxion Daily Semiconductors Bull 3X (Soxl) $ 2.1 billion

Direxion Daily TSLA Bull 2x (TSLL) 1.5 billion dollars

Prosthares UltraPro Short QQQ (SQQQ) $ 1.4 billion

Graniteshares 2x Long Nvda (NVDL) $ 1.3 billion

Source: Strategic

These products are a stake on momentum in the short term, but they have an additional feature that has proven difficult to wrap their head: they reassure them daily.

Due to the guaranteed effects, it may be very difficult to know the actual returns that will be on a daily basis. This means that keeping a 2X product is a crane to take advantage of anything more than a day that may lead to a much lower 2x return, depending on the market direction.

Here is an example: Suppose the S&P 500 increased by 10 % one day, then decreased 10 % the next day.

A $ 100 investment will look like this:

S & P 500: Virtual $ 100 investment

Today 0 $ 100

The first day (an increase of 10 %): $ 110

Today 2 (10 % decrease). 99 dollars

Two days after this, you have $ 99, so it decreased by 1 %. If you have a reformer product throughout these two days, it seems that you will decrease by 2 %, or you will have $ 98.

But due to the daily reset, this is not what is happening.

S & P 500: a hypothetical investment of $ 100 in 2X, the benefit crane

Today 0 $ 100

The first day (an increase of 10 %, increases 20 %): $ 120

Today 2 (10 % decreased, 20 % decreased) 96 dollars

You already have $ 96, instead of $ 98, and in mind this excludes fees.

Over time, these calculations become gradually more complicated.

As a result, those who provide these products routinely mention that they are not intended for purchase and purchase investors.

This money contains very large daily transformations, so most investors seem to understand the risk of holding these products on anything daily.

But Sohn told CNBC that all investors in supported products should be very careful.

“At some point, it is useful to evaluate the risks involved whenever the market takes a southern role,” Sun told CNBC.

Doug Yoles, CEO of Direxion, will be on the ETF EDGE part from the end of the first half at 12:35 pm East time on Monday, and will also broadcast ETF EDGE from 1:30 pm East time. Todd Rosnbols, head of research at Vettafi will join him.