The S&P 500 index has reached a new all-time high, prompting a shift among traders towards riskier, leveraged exchange-traded funds (ETFs). Reports indicate that there has been a notable increase in the popularity of ETFs employing complex derivatives strategies, which include leveraging stock indexes and individual stocks, as well as seeking downside protection for assets such as stocks and bitcoin. In light of these market developments, Morgan Stanley Wealth Management has expressed concerns regarding high valuations in U.S. stocks, advising clients to diversify their portfolios and reduce their exposure to these equities. Additionally, investors have poured nearly $26 billion into high-yielding ETFs in 2024, reflecting a shift in investment strategies as they navigate the current market landscape.