Top Performing Leveraged/Inverse ETFs: 02/26/2023

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. LABD – Direxion Daily S&P Biotech Bear 3x Shares

LABD, which offers inverse exposure to the US Biotechnology sector, topped the list of the top performing inverse ETFs and gained by ~19% last week on concerns about future interest rate hikes and high inflation. The overall biotech sector declined by ~2% in the last five days.

2. YANG – Direxion Daily FTSE China Bear 3X Shares

YANG, which offers 3x daily short leverage to the FTSE China 50 Index, was present on the top performing levered/ inverse ETF returning more than 17% last week, as Chinese equities declined amid increasing US-China military tension, rising U.S. interest rates, and not so encouraging economic indicators.

3. BOIL – ProShares Ultra Bloomberg Natural Gas

BOIL, the natural gas ETF featured on the list of top performing levered ETFs and gained more than ~16% in the last week. Natural gas prices rose on increasing LNG exports and forecasts of colder weather conditions.

4. GDXD – MicroSectors Gold Miners -3X Inverse Leveraged ETNs

GDXD, which offers inverse levered exposure to Global Gold Miners, was one of the top inverse ETFs gaining ~16% last week. Gold prices inched lower on a strong U.S. dollar, rising Treasury yields, and the expectation of future interest rate hikes by the Fed.

5. WEBS – Direxion Daily Dow Jones Internet Bear 3X Shares

The WEBS ETF that inversely tracks companies with a solid internet focus was one of the top-performing levered/ inverse ETFs driven by higher benchmark U.S. treasury yield and a rising interest rate environment. The overall IT sector fell by ~2% in the last week and internet software & services registered a fall of 0.35%.

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

FLYD which tracks -3x the daily price movements of an index of US-listed travel-related companies made it to the weekly list of inverse ETFs with over ~12% returns. Travel stocks fell amid stubborn inflation fears and as the Federal Reserve continued its stance on rising interest rates.

7. HIBS – Direxion Daily S&P 500 High Beta Bear 3X Shares

HIBS which provides inverse exposure to the U.S. large cap stocks, was present on the top performing levered/ inverse ETFs list this week. Inverse ETFs gained as US stocks fell over a hot inflation report last week. Nine out of 11 S&P sectors ended the week in the red.

8. DRV – Direxion Daily Real Estate Bear 3X Shares

The DRV ETF, which offers -3x daily leverage to an index comprised of U.S. REITs, was one of the top-performing inverse ETFs returning more than 12% last week. Real estate was the second worst-performing sector falling by ~3.6% amid expectations of higher rates and a stronger-than-expected increase in prices last month.

9. FXP – ProShares UltraShort FTSE China 50

FXP which offers inverse exposure to China’s large cap stocks was another China-focused ETF that gained more than 11% in the last week.

10. NKEQ – AXS 2X NKE Bear Daily ETF

NKEQ which provides inverse exposure to the daily price movement for shares of Nike stock featured on the inverse ETFs list with ~11% weekly gains. The stock plunged last week amid higher inventory build-up and lower consumer spending.

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