Tesla, Nvidia, Palantir ETFs Dominate As Traders Pile Into High-Risk Bets In June

Wall Street loves a good comeback tale, and June’s ETF flows provided just that. With $102.7 billion in net inflows, according to FactSet data, the U.S. ETF business rebounded from its April slowdown, posting a 17% increase over May and taking total assets under management to $11.5 trillion. But the real tale? A few ETFs and issuers have left everyone else in the dust, flashing neon signs that investors are wagering on high-beta (highly volatile) funds.

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High-Conviction Inflows

Rafferty Asset Management booked a stunning $256.6 million in June inflows, a 730% recovery from May’s painful outflow of more than $40 million. Close behind was Tuttle Capital, taking in $68.7 million, another flip after a drubbing in May. Toroso Investments generated $7.8 million in new inflows, a small but significant amount.

What’s driving it? A league of single-stock and leveraged ETFs that are high-risk, high-reward, and extremely popular today.

Eight issuers launched 23 new single-stock ETFs in June — a notable increase. They are not for the weak of heart: 75% are geared (leveraged/inverse) and target tactical, high-conviction trades. Tesla TSLA, Nvidia NVDA, Palantir PLTR and MicroStrategy MSTR continue to be investor favorites, receiving the most issuer attention.

Funds That Dominated In June

Altogether, these six ETFs collectively brought in more than $391 million in June, predominantly from leveraged bets on the large-cap tech giants.

Looking at year-to-date inflows, FactSet revealed:

• TSL (Tesla 2X) tops YTD flows with $310.8 million.
• MSTY (MicroStrategy option income) takes second with $198 million.
• PTIR (Palantir 2X) is not far behind at $98.6 million.

Sector Signals: Where The Money Is Heading

June’s sector flows told a distinct story: investors are gravitating back into Tech, Consumer Discretionary, and Communication Services— all areas connected to AI, platforms, and online consumption.

Financials, Energy, and Health Care experienced ongoing outflows, meanwhile. This was evident from the $707 million inflows recorded in SPDR Select Sector Fund – Technology XLK, $459 million in Materials Select Sector SPDR Fund XLB and $601 million in the Communication Services Select Sector SPDR Fund XLC.

Conversely, $1.5 billion flowed out of SPDR Select Sector Fund – Financial XLF, $303 million from SPDR Select Sector Fund – Energy XLE and $661 million from SPDR Select Sector Fund – Health Care XLV.

And while fixed income flows fell 16% to $32 billion, equity flows rose 29% to $57 billion, showing that investors aren’t quite risk-averse, but are merely growing more discerning.

Watch The Leaders, Read The Signals

Although June’s overall inflows were robust, it’s the degree to which investor money has flowed into a handful of high-beta ETFs that’s most illustrative. It is a sign of unprecedented conviction, not merely in big tech and AI, but in tactical, aggressive investing. Whether the giants of this rally can sustain their dominance will be determined by macro tailwinds and how long this momentum mojo can last.

For the time being, the message from ETF land is unmistakable: risk is back on, primarily for those fearless enough to ride it 2X.

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