Top Performing Leveraged/Inverse ETFs: 06/25/2023

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. YANG – Direxion Daily FTSE China Bear 3X Shares

YANG, which offers 3x daily short leverage to the FTSE China 50 Index, topped the top performing levered/ inverse ETF returning more than 23% last week, as Chinese equities declined amid a smaller-than-expected benchmark loan prime rate cut which failed to boost investor confidence.

2. ZSL – ProShares UltraShort Silver

ProShares UltraShort Silver, ZSL offers -2x daily leverage to silver prices and was one of the best performing inverse ETFs last week as silver prices fell on a strong US dollar as well as two more rate hike expectations before the year-end.

3. CONL – GraniteShares 1.5x Long Coinbase Daily ETF

CONL, which provides 1.5x leveraged exposure to the daily price movement for shares of Coinbase stock, ranked third on the list of top performing levered ETFs with ~15.7% weekly gains. Shares of crypto stocks gained optimism around the prospects of a number of financial institutions launching crypto-related ETFs.

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 returning over ~15.3% last week. Gold prices inched lower as the U.S. dollar strengthened to ~$102.60 in the last week as well as on Fed rate hike speculations.

5. BNKD – MicroSectors U.S. Big Banks Index -3X Inverse Leveraged ETNs

BNKD which tracks three times the inverse performance of an equal-weighted index of US large banks featured on the top-performing inverse ETFs list. The Financial sector lost over ~2% with the commercial banking segment declining by ~3.5% in the last week. Overall stocks were down on weaker investor confidence after news about two more expected Fed rate hikes this year.

6. 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 15% in the last week. China stocks fell on modest rate cuts.

7. SOXS – Direxion Daily Semiconductor Bear 3x Shares

The SOXS ETF inversely tracks the performance of the PHLX Semiconductor Index, featured on the list of levered/ inverse ETFs last week. The semiconductor sector fell by more than 4.7% in the last week and technology was the worst-performing sector. Tech stocks were battered in the last week on waning investor optimism as the Fed further signaled rate hikes going forward.

8. EDZ – Direxion Daily MSCI Emerging Markets Bear 3X Shares

Direxion Daily MSCI Emerging Markets Bear 3X Shares, EDZ, which offers daily short leverage to the broad-based MSCI Emerging Markets Index, was one of the top performing inverse ETFs list as emerging market stocks fell after a failed mutiny attempt by the Russian mercenaries raising doubts about the position of Russian President and the country’s stability. Stocks were also impacted by a slower-than-expected post-reopening recovery in China.

9. 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. The real estate sector fell by ~1.9% last week amid expectations of higher rates, lower prices, and falling inventories.

10. NRGD – MicroSectors U.S. Big Oil Index -3X Inverse Leveraged ETN

NRGD ETF, which provides inverse exposure to the performance of U.S. Oil, Gas & Consumable Fuels, featured on the list of the top performing levered/ inverse ETFs, gaining over 12%. Oil and consumable fuels fell by ~1.8% upon concerns over a strong US dollar, slowing drilling activity, and Federal Reserve’s stance to further hike rates to curb inflation.

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