Investor risk appetite is surging to near-record levels, with traders pouring money into speculative investment vehicles seemingly undeterred by President Donald Trump’s implemented tariffs.

Total assets under management (AUM) in all leveraged equity ETFs have rocketed by 74% since April lows, when the tariffs were announced, pushing the total past $1.6 billion, according to an analysis by The Kobeissi Letter.

Markets Have Become Increasingly ‘Febrile’

The data, sourced from Bloomberg and Macrobond, highlights a market that has become increasingly “febrile.” The influx of over $700 million into these high-risk funds since spring marks has pushed the AUM to the highest level since September 2022.

This brings the total AUM just shy of the $1.8 billion peak recorded three years ago, signaling that “risk appetite is incredibly strong.”

Risk appetite is incredibly strong: Total assets under management ...