Tariff shocks hit global financial markets, and as investors panic-sell almost all assets, leveraged ETFs have experienced an epic collapse, losing over $25 billion in just two trading days. According to reports, last Thursday and Friday, investors lost $25.7 billion in leveraged exchange-traded funds (ETFs), marking the largest collapse ever for these high-risk funds that have attracted a large number of retail investors seeking quick returns in recent years. According to calculations by FactSet, these highly leveraged funds (which can amplify daily returns of individual stocks or indices by up to 5 times) lost nearly a quarter of their value last Thursday and Friday due to the impact of Trump's "reciprocal tariffs" and turmoil in the financial markets. This loss far exceeds the previous record for the largest loss: During the COVID-19 crash in March 2020, leveraged ETFs lost $9.1 billion and $5.6 billion over two days, as well as during the "Volmageddon" in 2018, where extreme volatility led to significant losses for short volatility ETFs. Semiconductor and Tech Stock ETFs Suffer Heavy Losses According to FactSet data, the Ireland-listed Leverage Shares 4x Long Semiconductors ETP plummeted 59.1% over two days, setting a record for the highest percentage loss. The other three Leverage Shares ETFs—5x Long Magnificent 7, 3x Boeing, and 3x Arm—each lost over 50%. In dollar terms, the largest loss among leveraged ETFs was the ProShares UltraPro QQQ, which is based on tech stocks, evaporating $6.3 billion. This leveraged ETF has a size of $20 billion. Elisabeth Kashner, head of global fund analysis at FactSet, stated: "This is really all related to semiconductors and tech stocks; the ETFs with the largest percentage losses are all single-stock ETFs." Leveraged ETFs Are Like "Sharp Blades" "These products are like very sharp blades," Kashner said, "They are only suitable for very specific purposes, and those who use them must know what they are doing." This incident highlights the risks faced by retail investors in this rapidly growing industry. Since their launch in 2006, global leveraged ETFs have expanded to over 650 funds. Kenneth Lamont, chief researcher at Morningstar, pointed out: "Retail investors are particularly vulnerable to the massive losses that such high-risk products can bring." As more retail investors flock to these complex products in search of quick returns, regulators may pay closer attention to risk control and investor education issues in this industry