Leveraged ETFs to Buy $28.5 Billion, Including $5 Billion SPX, Ahead of Historic $34.3 Billion Rebalance

Leveraged exchange-traded funds (ETFs) are set for a historic buying spree as they prepare for a significant rebalance before the close of the US equity market on Wednesday. CitiBank's desk estimates that leveraged ETFs will need to purchase approximately $28.5 billion worth of assets, including $5 billion in the S&P 500 (SPX), $14 billion in the Nasdaq 100 (NDX), $900 million in the Russell 2000 (RTY), $6.6 billion in semiconductor stocks, and $2.3 billion in technology stocks. Nomura has calculated the end-of-day rebalance at $34.3 billion, marking it as the largest in their history. This surge in buying activity comes in the wake of a tariff-induced selloff, with retail investors poised to benefit from the anticipated gains.