The US bank has identified leveraged ETFs as a strong driver for aggressive market downturns.

The inherent structural mechanics of leveraged exchange traded funds (ETFs), particularly their daily rebalancing activities, are primary contributors in exacerbating market volatility, according to J.P. Morgan.  ‘The market move drove large selling flows from levered ETFs on Friday (10 October), likely caused option dealers to turn short gamma, and will likely trigger further systematic selling flows this week, leaving markets fragile,’ stated a research update from the b