Quantitative Strategies Fueling the Unprecedented Bull Market Surge

Derivative-Based ETFs at the Heart of Historic Market Run

A historic market run has been underway, with the S&P 500 Index surging to new heights. And at the heart of this rally are derivative-based ETFs, which have played a crucial role in fueling the market's upward momentum.

According to Zacks Investment Research, derivative-based ETFs have been instrumental in driving the market's gains. These ETFs, which track derivatives such as options and futures, have seen significant inflows as investors seek to capitalize on the market's upward trend.

One of the key beneficiaries of this trend has been the Invesco QQQ ETF (QQQ), which has seen its assets under management surge to over $20 billion. The QQQ ETF tracks the Nasdaq-100 Index, which has been a major driver of the market's gains.

Another derivative-based ETF that has seen significant gains is the ProShares VIX ETF (VIXY), which tracks the CBOE Volatility Index (VIX). The VIXY ETF has seen its assets under management increase by over 20% in the past quarter, as investors seek to profit from the market's volatility.

The surge in derivative-based ETFs is not surprising, given the market's historic run. The S&P 500 Index has surged over 15% in the past year, with many investors seeking to capitalize on the market's upward momentum.

However, the surge in derivative-based ETFs also raises concerns about the potential risks associated with these instruments. Derivatives can be highly leveraged, meaning that small changes in the underlying asset's price can result in large gains or losses.

In conclusion, the surge in derivative-based ETFs is a key factor driving the market's historic run. While these ETFs can be highly profitable, investors should be aware of the potential risks associated with these instruments.