Concern is growing as investors pour money into "leveraged" ETFs that use debt to amp up returns. But they have their reasons.

US margin debt hit a record $1.42 trillion in May 2026 as leveraged ETFs concentrate in tech and AI sectors, raising fears of a leverage-driven market

Concern is growing as investors pour money into "leveraged" ETFs that use debt to amp up returns. But they have their reasons.

Record leverage is sweeping through the financial system, exposing various entities to potential losses... Banks' balance sheets are a key vector of risk...