Top Performing Leveraged/Inverse ETFs: 09/24/2023

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. CARD – MAX Auto Industry -3x Inverse Leveraged ETN
CARD, an ETN that tracks -3x the daily price movements of an index consisting of US-listed companies in the auto industry topped the list of inverse ETFs with 24% weekly gains as the auto industry declined amidst an oversupply of vehicles and expected falling prices.

2. UVIX – 2x Long VIX Futures ETF
UVIX which offers daily 2x leveraged exposure to short-term VIX futures, was one of the top-performing levered ETFs as market volatility increased amid concerns over a stubborn inflation, hawkish Fed comments, and expectations of another rate hike before the year-end. VIX, the CBOE Volatility index rose to 16.90 from 14 in the prior week.

3. 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 ~19% returns. Travel stocks fell amid rising fuel costs and a slowdown in domestic demand.

4. LABD – Direxion Daily S&P Biotech Bear 3x Shares
The biotech fund, LABD which offers inverse exposure to the US Biotechnology sector declined by nearly 18% last week amid rising rates prospects and as investors continued to shun risky assets. The healthcare sector registered a fall of ~0.5% in the last five days.

5. 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 17% last week. The real estate sector fell by ~4.7% last week and was the second-worst performing sector amid high mortgage rates, soaring prices, and hawkish Fed comments.

6. WEBS – Direxion Daily Dow Jones Internet Bear 3X Shares
The WEBS ETF that tracks companies having a strong internet focus was present on the top performing levered/ inverse ETFs list this week. Tech stocks’ slump was driven by rising yields and the Fed’s aggressive stance on interest rates.

7. UVXY – ProShares Ultra VIX Short-Term Futures ETF
UVXY, which offers leveraged exposure to an index of short-term VIX futures contracts was one of the top-performing levered ETFs this week as volatility increased amid a persistently strong inflation and hawkish Fed comments.

8. FNGD – MicroSectors FANG+™ Index -3X Inverse Leveraged ETN
FNGD ETF, which provides inverse exposure to the US big tech equity also featured on the list of top inverse ETFs as the technology sector lost ~2.6% in the last five days. The sector witnessed a fall amid a sell-off driven by rising Treasury yields and expectations of one more hike before the end of the year.

9. BERZ – MicroSectors Solactive FANG & Innovation -3X Inverse Leveraged ETN
The BERZ ETF provides daily -3x inverse exposure to an index of FANG and technology companies also featured on the list of top-performing inverse ETFs with ~14% weekly returns amid high Treasury yields.

10. 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 stocks fell after the Fed announced that the inflation war was yet not over and to expect another rate hike in 2023.

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