Top Performing Leveraged/Inverse ETFs: 04/09/2023

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. GDXU – MicroSectors Gold Miners 3X Leveraged ETN

GDXU is a leveraged equity fund that provides 3x exposure to an index comprised of two of the largest gold miners’ ETFs, viz VanEck Gold Miners ETF (GDX) and VanEck Junior Gold Miners ETF (GDXJ), that invest in the global gold mining industry. GDXU topped the list of top performing levered ETFs and returned over 16% as prices of gold increased, driven by weaker U.S. economic data in the last week.

2. SOXS – Direxion Daily Semiconductor Bear 3x Shares

The SOXS ETF inversely tracks the performance of the PHLX Semiconductor Index, ranked second on the list of levered/ inverse ETFs. The semiconductor sector lost more than 2% in the last week after Beijing announced a cybersecurity review of the U.S. leading chip maker, Micron Technology. The industry is viewing this as a retaliation measure for U.S. restrictions placed on China’s semiconductor industry.

3. CURE – Direxion Daily Healthcare Bull 3x Shares

The CURE ETF offers 3x daily leveraged exposure to an index consisting of healthcare stocks. The healthcare sector gained ~3% and was the second-best performing sector in the last five days, as investors looked at defensive stocks to hedge their portfolios in volatile times.

4. UCO – ProShares Ultra Bloomberg Crude Oil

ProShares Ultra Bloomberg Crude Oil was one of the top levered ETFs returning more than 12% last week, as oil prices gained on tighter supply concerns.

5. NUGT – Direxion Daily Gold Miners Index Bull 2x Shares

Another gold ETF, NUGT seeks daily investment results of 200% of the performance of the NYSE Arca Gold Miners Index, ranked among the top levered ETFs. The ETF gained more than 12% in the last week.

6. UTSL – Direxion Daily Utilities Bull 3X Shares

UTSL, which provides daily 3x exposure to an index of utility companies in the U.S., was on the top performing levered/ inverse ETFs list last week as the utilities sector gained by ~2.9% in the last week. The utilities sector looks to benefit from a defensive bent in the market.

7. TMF – Direxion Daily 20+ Year Treasury Bull 3X Shares

Direxion Daily 20+ Year Treasury Bull 3X Shares, which tracks the NYSE 20 Year Plus Treasury Bond Index, was also present on the list of top performing levered/ inverse ETFs driven by a drop in yields on recessionary fears, making Treasuries a safe haven investment.

8. GGLL – Direxion Daily GOOGL Bull 1.5X Shares ETF

GGLL provides 1.5x leveraged exposure to the daily price movement for shares of Google stock featured on the list as the stock rose, driven by the company’s cost-cutting efforts.

9. WTIU – MicroSectors Energy 3X Leveraged ETNs

WTIU, an exchange-traded note that tracks 3x of the daily price movements of an index of US-listed energy and oil companies, was one of the top performing levered ETFs. Energy was the best-performing sector gaining by ~3.7% in the last five days. Oil prices increased on tighter supply concerns as OPEC+ producers announced new production cuts.

10. OILU – MicroSectors Oil & Gas Exp. & Prod. 3x Leveraged ETN

OILU, which provides 3x daily leveraged exposure to a tier-weighted index of US firms involved in oil and gas exploration and production, also featured on the list with over ~8% weekly gains.

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