Are Leveraged ETFs to Blame for Selloffs? JPM Says Yes
When markets tumble, everyone starts looking for a suspect, and leveraged ETFs could be next in the police lineup. JPMorgan analysts blamed levered ETFs for Friday’s stock selloff, which resulted in the S&P 500’s biggest one-day loss since April, in a research note published Monday. JPMorgan Managing Director Bram Kaplan said leveraged products will “likely trigger further systematic selling flows this week, leaving markets fragile.” Although the drop was triggered initially by President Donald Trump’s th ...