Short-bias ETFs, which profit from falling stock prices, are seeing strong inflows as investors position for a potential pullback in tech and AI-driven megacaps like Nvidia, Microsoft, and Oracle.
- September saw $3.7B in global inflows, the largest monthly amount in nearly three years.
- U.S. funds: $2.2B; Japan: $653M; South Korea: $424M.
- October inflows continue: Direxion Daily Semiconductor Bear 3X ($255M), ProShares UltraPro Short QQQ ($200M), ProShares Short S&P 500 ($143M).
- Market caution grows as S&P 500 & Nasdaq hit record highs, with forward P/E ratios near 5-year highs.