AI-Driven ETFs: The Wild West of Wall Street

The rise in U.S. single stock leveraged and inverse ETFs, driven by AI hype, continues to dominate the financial landscape. These speculative investment products, attracting over $17.7 billion, leverage the AI boom and pose both opportunities and risks for investors. Experts warn about potential market overcrowding and volatility concerns.

The surge in U.S. single stock leveraged and inverse exchange-traded funds (ETFs), largely fueled by the artificial intelligence (AI) revolution, is reshaping the American financial markets. The explosive growth in these speculative products, particularly those tied to AI themes, underscores investor appetite for high-stakes returns.

In 2025 alone, asset managers introduced 112 U.S.-listed leveraged and inverse ETFs centered around single stocks, up from 38 the previous year. These instruments, which enable investors to capitalize on both rising and falling stock prices, are popular among speculators seeking to exploit daily market volatility.

Currently, AI-related ETFs make up more than half of the 190 single stock leveraged and inverse ETFs available in the U.S., representing a significant portion of the $23.7 billion market investment. As the AI-driven market gains traction, analysts caution investors about heightened risks and market saturation.

(With inputs from agencies.)