Top Performing Leveraged/Inverse ETFs: 10/22/2023

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 inflation and mixed consumer sentiments, as consumers take out lower auto loans. Also, the yield on the benchmark 10-year Treasury note rose, which could translate into higher consumer borrowing costs.

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

YANG, which offers 3x daily short leverage to the FTSE China 50 Index, featured on the top performing levered/ inverse ETF returning over ~17% last week, as Chinese equities decline amid geopolitical risks, slowing real estate sector, and lower growth.

3. TSLQ – AXS TSLA Bear Daily ETF

TSLQ, which provides inverse exposure to the daily price movement for shares of Tesla stock, ranked among the inverse ETFs with over 17% weekly returns as the stock registered a fall after weak earnings report and pessimistic comments from the CEO.

4. TSLS – Direxion Daily TSLA Bear 1X Shares

Another Tesla-focused inverse fund, TSLS, provides inverse exposure to the daily price movement for shares of Tesla stock, featured on the list with ~17% weekly gains.

5. TTT – ProShares UltraPro Short 20+ Year Treasury

ProShares UltraPro Short 20+ Year Treasury also made it to the list of top-performing inverse ETFs as Treasury yield rose.

6. KOLD – ProShares UltraShort Bloomberg Natural Gas

KOLD, which offers 2x daily inverse leveraged exposure to natural gas, was one of the top performing levered/ inverse ETFs returning over 16% last week, as natural gas prices fell amid mild higher production volumes and supplies.

7. TMV – Direxion Daily 20+ Year Treasury Bear 3x Shares

TMV, which offers 3x short leveraged exposure to the NYSE 20-Year Plus Treasury Bond Index, made it to the list as bond yield moved higher on the back of higher government debt and bonds’ supply.

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 15% last week. The real estate sector fell by ~6% last week and was the worst performing sector amid high Treasury yields and hawkish Fed fears.

9. SSG – Proshares Ultrashort Semiconductors

SSG ETF, which offers 2x daily short leverage to the Dow Jones U.S. Semiconductors Index, was another top performing inverse ETF, gaining by more than 13% last week. The semiconductor segment registered a fall of more than 6% in the last five days after Hamas attacks on Israel. In fact many large tech companies also pulled out of one of the largest web tech summits, globally, over Israel.

10. 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 with ~13% returns in the last week. The semiconductor sector fell by ~6% in the last week and the overall technology sector was down by ~3.6% amid rising U.S. Treasury yields and conflict in Israel.

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