Themes ETFs Files for 2x Leveraged Version of DRAM ETF

Themes ETFs filed with regulators to create a 2x leveraged exchange-traded fund that would track Roundhill’s DRAM ETF. Roundhill’s fund launched April 2, has gained about 98% since launch and held roughly $6.7 billion in assets as of May 11.

Roundhill’s DRAM is an actively managed ETF that invests only in global memory chip makers. The fund charges a 0.65% expense ratio and drew about 17% of all U.S. stock ETF inflows for the week ending May 8. Its largest holding is SK Hynix at about 27.4%, with Micron Technology and Samsung among the other top positions. The top two holdings account for roughly 54% of the fund’s assets.

The proposed leveraged product would aim to deliver twice the daily return of DRAM. Leveraged funds typically use derivatives and borrowing to amplify daily performance, increasing both gains and losses for investors who hold them.

Leveraged ETFs rebalance daily, which can create a compounding effect that makes performance diverge from the targeted multiple over longer holding periods in volatile markets. A security that falls 10% then rises 10% does not return to its starting value; the geometric effect is larger for a 2x leveraged fund following the same moves.

Because DRAM concentrates more than half its assets in two stocks, negative earnings or reduced spending on AI infrastructure by large buyers could prompt heavy selling and larger declines in a leveraged version. The filing must include disclosures about risks and operations and is subject to regulatory review before the product can launch.