Top Performing Leveraged/Inverse ETFs: 08/21/2022

These were last week’s top performing leveraged and inverse ETFs. Note that because of leverage, these kinds of funds can move quickly. Always do your homework.

1. PBUG – Pacer iPath Gold Trendpilot ETN

PBUG which aims to help investors hedge volatility by deploying a strategy involving exposure to the total return of rolling gold futures contracts and three-month US Treasury bills topped the list of levered ETFs last week with ~26% returns. The U.S. benchmark treasury yields increased last week and VIX, the CBOE volatility index also increased to 23.72 from near ~19 levels in the last five days.

2. FLYD – MicroSectors Travel -3x Inverse Leveraged ETN

FLYD which tracks -3x the daily price movements of an index of US-listed travel-related companies ranked second on the weekly list of inverse ETFs with 16.7% returns. Travel stocks declined after weak results and revenue forecast from Norwegian Cruise Line recently. Oil prices also soared high on warnings of OPEC output cuts.

3. BITI – ProShares Short Bitcoin Strategy ETF

The BITI ETF aims to gain from bitcoin price declines also featured on the list. Growth and tech stocks were pressured under the rising bond yields scenario.

4. PFIX – Simplify Interest Rate Hedge ETF

The PFIX ETF which offers a hedge against higher long-term interest rates also made it to the list with ~13% returns. With high inflation, interest rates have also increased making PFIX an appropriate choice for aggressive investors looking to gain from higher interest rates.

5. JJE – iPath Series B Bloomberg Energy Subindex Total Return ETN

JJE which provides broad exposure to energy commodities was one of the top performers last week as energy was the best performing sector with ~2.7% returns. Fuel prices benefited from tight supply conditions and an indication of output cuts.

6. KSET – KraneShares Global Carbon Offset Strategy ETF

KSET, provides exposure to the voluntary carbon market by investing in carbon offset futures, helping businesses to manage their GHG-reduction goals. Carbon removal is expected to get a big boost from the upcoming Inflation Reduction Act of 2022.

7. GRN – iPath Series B Carbon ETN

GRN which helps investors benefit from a reduction in the supply of carbon credits also made it to the list with a ~10% return in the last week.

8. SOGU – AXS Short De-SPAC Daily ETF

The SOGU ETF was one of the top performing ETFs with ~8% weekly returns. The ETF which provides inverse exposure to the daily performance of the De-SPAC Index focuses on US-listed companies that recently completed a business combination transaction with a special purpose acquisition company, featured on the list on slowing SPAC market conditions. Not even one special purpose acquisition company was issued in July.

9. KEUA – KraneShares European Carbon Allowance Strategy ETF

KEUA which tracks the EUA (European Union Allowances) carbon credit futures index also made it to the list with 7.8% weekly gains, on better prospects for global carbon markets as the effects of climate change continue to become more prominent globally.

10. PSIL – AdvisorShares Psychedelics ETF

PSIL provides exposure to the emerging global psychedelics industry with at least 25% of its investments in the Pharmaceuticals, Biotechnology & Life Sciences industry group. Psychedelics are finding increased applications in treating mental health. The psychedelic drugs market is expected to reach ~$7 billion in 2026 growing at ~14% CAGR.

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