Bill Ackman, the billionaire investor and founder of Pershing Square Capital Management, questioned the use of highly leveraged ETFs and zero-day stock options, questioning their contribution to society and the economy.

“How have 3X leveraged ETFs and Zero Days to Expiration (0DTE) options advanced society or contributed to our economy?” he posted on X.com.

Leveraged funds allow investors to magnify their exposure to an asset or index. These funds are typically meant for short-term trading.

The ProShares UltraPro QQQ ETF (NASDAQ:TQQQ), for example, is up more than $2.3B this week so far, and is on track for the biggest weekly inflow in its history.

The zero-day stock options deal with 24-hour contracts, and some investors say they heighten volatility in the equity markets.

The SPDR S&P 500 ETF Trust (SPY), Invesco QQQ Trust (QQQ), the S&P Index (SPX), and the S&P 500 Mini-SPX Index (XSP) list daily options.

“Investors and market commentators are reading too much into short-term market movements in rates, currencies and equities,” Ackman posted on X.com.

“I believe that it is much more likely that recent sharp moves in these asset classes is due to highly leveraged market participants being forced out of positions than due to fundamentals,” he said. “In other words, technical factors are driving the dramatic market moves.”

This has resulted in markets becoming highly unreliable as short-term impact indicators of policy changes, he said.

“I don’t understand how it is good for the world to allow investors in equities to operate with 10-1 leverage and investors in Treasurys and currencies to operate with 100-1 leverage,” he added. “When did we decide as a society to abandon the margin rules that were put in place to protect markets from this kind of volatility?”

Here are some of the top 3x leveraged ETFs, aside from TQQQ:

• Direxion Daily Semiconductor Bull 3x Shares (SOXL) – Average volume: 93M
• Direxion Daily 20+ Year Treasury Bull 3X Shares (TMF) – Average volume: 139M
• Direxion Daily S&P 500 Bull 3X Shares (SPXL) – Average volume: 5.16M
• ProShares UltraPro S&P500 (UPRO) – Average volume: 6.5M
• Direxion Daily Technology Bull 3X Shares (TECL) – Average volume: 1.9M
• Direxion Daily Financial Bull 3X Shares (FAS) – Average volume: 887.6k
• Direxion Daily Small Cap Bull 3X Shares (TNA) – Average volume: 15M