By the end of May 2026, US ETF assets reached $15.7 trillion, marking a 17% increase compared to the previous year. This growth is primarily driven by speculative instruments, including prediction-market vehicles and leveraged products, rather than traditional index trackers.
Morningstar reports that approximately 98% of recent ETF filings are categorized as 'novel' products. For instance, Corgi Funds launched several 2x daily leveraged ETFs in 2026, allowing retail traders to double their exposure to individual stocks and niche sectors.
Some issuers have submitted filings for products with exposure exceeding 2x. In response, the SEC has paused reviews of these high-leverage offerings and, on June 30, 2026, requested public comment on the regulation of leveraged ETFs and prediction-market strategies.
Industry leaders argue that the SEC's broad classification of 'novel' products creates a bottleneck in the review process and stifles innovation. High-leverage and event-linked vehicles are already facing delays, which poses a significant risk to smaller firms that have invested heavily in development.
