The 3x Leverage That Built a 192% Year Just Took Back 18% in Hours

The 3x Leverage That Built a 192% Year Just Took Back 18% in Hours Travis Wolfe / Shutterstock.com Austin Smith Mon, June 8, 2026 at 6:00 PM GMT+7 7 min read NVDA BULZ AMZN TSLA META Quick Read BULZ shed 18% in one session, turning $10,000 into roughly $8,200, yet still trades up 192% over the trailing twelve months. NVDA dropped 6% and AVGO fell 8% in a coordinated selloff, with NVIDIA alone shedding roughly $279 billion in market cap. May payrolls hit 172,000 against an 80,000 estimate, spiking the two-year Treasury yield to a sixteen-month high and pressuring long-duration growth multiples. It sounds nuts, but SoFi is giving new active invest users up to $1,000 in stock for a limited time, and all it takes is a $50 deposit to get started. See for yourself (Sponsor) On Friday, June 5, 2026, the MicroSectors FANG Innovation 3x Leveraged ETN (NYSEARCA:BULZ) closed at $41.05, down roughly 18% from the prior close of $49.89. If you held $10,000 of BULZ at Thursday s close, you woke up Saturday with roughly $8,228 and a question about what just happened. The honest answer is that nothing exotic happened. A concentrated basket of mega-cap tech names sold off in unison, and a product designed to multiply that move by three did precisely that. The week-long picture is worse than the single day. BULZ went from $53.98 on May 29 to $41.05 on June 5, roughly a 24% drawdown in five trading sessions. The one-year picture is the other side of the same coin, and the reason this note has any retail audience at all. BULZ is still up roughly 192% over the trailing twelve months and up about 58% year to date. Leverage giveth, leverage taketh. BULZ is an exchange-traded note issued by Bank of Montreal, which means holders carry BMO s senior unsecured credit risk in addition to whatever the index does. The note tracks three times the daily return of the NYSE FANG+ Innovation Index, a ten-name basket of large-cap tech and innovation stories that includes NVIDIA (NASDAQ:NVDA), Tesla (NASDAQ:TSLA), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META), and Broadcom, along with Alphabet, Netflix, and a handful of comparable names. The index is roughly equal-weighted at each rebalance, so no single name dominates, which is also why a coordinated selloff hurts more than a one-stock blowup would. The 3x daily reset is the part that matters. Every morning the note re-strikes its exposure to deliver three times that day s index return, not three times the return since you bought it. Inside a sustained uptrend this is the mechanism that produced the 191% twelve-month gain. Inside a sharp single-day drop it is the mechanism that produced Friday. And inside a choppy sideways tape it is the mechanism that quietly bleeds value even when the index ends the month flat. That last property is volatility decay, and it is the reason BULZ is up only 0.22% over the trailing month while the headlines around its holdings have been mostly fine. Friday was a coordinated drawdown across the index. NVIDIA fell about 6% to $205, which on a market cap that started the day near $5 trillion is the kind of dollar move that anchors the rest of the tape. The custom-instruction read of the day puts that loss at roughly $279 billion in market cap shed in a single session. Broadcom (AVGO) was worse on a percentage basis, down roughly 8% to $386, the continuation of a slide that began after the company s Q3 AI semiconductor guidance landed light on Wednesday, June 3. Tesla gave back about 7% to $391, Meta fell roughly 6% to $593, and Amazon dropped about 3% to $246. Run those numbers through an equal-weighted basket and you get an index day in the high single digits to the downside. Multiply by three, and 18% is exactly the right answer. There is no hidden tracking error story here, no issuer mishap, no broken creation mechanism. The product worked. SoFi Active Invest is offering a limited-time promotion. Open an account, fund it with $50 or more, and you could receive up to $1,000 in complimentary stock for Active Invest accounts. See for yourself by clicking here now. Two catalysts stacked. The first was Broadcom. CEO Hock Tan delivered a quarter that printed $22.19 billion in revenue and $2.44 in non-GAAP EPS against a $2.40 consensus, with AI semiconductor revenue at $10.8 billion, up 143% year over year. The Q3 guide of $29.4 billion in total revenue and $16.0 billion in AI semis was a beat in absolute terms and a disappointment relative to the bar that traders had set. AVGO sold off roughly 13% to 15% the next day per the week s setup notes, and the read-through traveled across the AI complex. The second catalyst was the Friday payrolls print. May payrolls came in at 172,000 versus an 80,000 estimate, which yanked the two-year Treasury yield to 4.16%, a sixteen-month high, and revived the rate-hike conversation that the market had largely written off. Long-duration growth multiples are most sensitive to exactly that move, and the FANG+ basket is esse

The 3x Leverage That Built a 192% Year Just Took Back 18% in Hours

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