The leveraged single-stock ETF boom is showing signs of a shakeout, with a flood of new products colliding with shrinking average fund sizes and a surge in closures.
By mid-August, 244 leveraged ETFs had launched in the U.S., already surpassing the 229 introduced during all of 2025, per a Reuters report. Yet the average leveraged ETF has shrunk from $272.2 million in assets at the end of 2024 to just $63.3 million, according to Morningstar Direct, cited by Reuters. Half now have less than $7 million in AUM.
The mismatch is becoming harder to ignore. Morningstar says 63 leveraged single-stock ETFs have closed in 2026, versus only three in 2025. Separately, Kepler Cheuvreux data cited by the Financial Times puts single-stock leveraged fund delistings at 122 in the past 12 months, underscoring the industry’s accelerating churn.
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