Why do Traders like Leveraged Single-Stock ETFs?

Why have traders and strategic-oriented investors been gravitating toward leveraged and inverse single stock ETFs?

Ron, it's a great question. You said it at the onset in terms of growth. It's growth upon growth in our industry as a whole of ETFs. And if we look at where we compete across leverage and inverse, we're a clear leader. What we've seen particularly with our single stock franchise is that franchise is about $10 billion in assets now.

So it's grown quite rapidly. What investors seem to be demanding and interested in is precision, flexibility, and optionality. That's what these tools are built for to deliver on those three points. They are tools that are tactical in nature, built for traders who are looking to express a view on the markets, whether it's something that's happening in earnings.

We're just wrapping up an earnings season that has clearly been very notable in terms of surprises on the upside and some misses on the downside. These tools are built to give those traders an opportunity to play either side. We'll talk to some specific names in a little while, but what we have tried to do is to continue to evolve our lineup to support the modern retail trader. That is an evolving set of investors and traders.

Those needs are changing at all points in time, so we brought a lot of new product to market. We continue to look at new single stock opportunities for companies that we see as emerging and that traders may find to be quite interesting, as well as things outside of that, which we can touch on later.