Tradr 2X Long SNDK Daily ETF (SNXX) plummeted 12.97% intraday on Monday, as a broad sell-off in the storage chip sector was significantly amplified by the fund's leveraged structure.

The decline follows a steep drop in the underlying storage chip sector, with key stocks like SanDisk and Western Digital falling over 10% recently. Market analysts attribute the sector-wide weakness to excessive prior gains and stretched valuations, prompting a rotation of capital from chip stocks into more defensive sectors.

As a 2x daily leveraged product designed to track SanDisk, the ETF's mechanism magnifies the price movement of the underlying asset. This inherent feature of leveraged instruments leads to an amplified drawdown during periods of market volatility, resulting in the ETF's steeper decline compared to the broader sector.