Top Performing Leveraged/Inverse ETFs: 01/07/2024

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. MSOX – AdvisorShares MSOS 2x Daily ETF

MSOX, which seeks to achieve 2x the total daily return of the AdvisorShares Pure US Cannabis ETF (MSOS) through swap agreements, topped the list with a ~27% weekly return on widespread support for federal legalization in the Biden administration.

2. BOIL – ProShares Ultra Bloomberg Natural Gas

BOIL, the natural gas ETF topped the list of top-performing leveraged ETFs and gained more than ~24% in the last week. Natural gas prices rose in colder-than-expected weather in January.

3. SOXS – Direxion Daily Semiconductor Bear 3x Shares

The SOXS ETF inversely tracks the performance of the PHLX Semiconductor Index, ranked third on the list of levered/ inverse ETFs with 18.9% returns in the last week. The semiconductor sector fell along with the broader decline in the market around fading optimism for aggressive rate cuts and rising levels of uncertainty.

4. CARD – MAX Auto Industry -3x Inverse Leveraged ETN

CARD is an exchange-traded note that tracks -3x of the daily price movements of an index consisting of US-listed auto companies and featured on the list with over 18% weekly returns on falling demand and slowing growth in EV sales.

5. TECS – Direxion Daily Technology Bear 3X Shares

Another inverse technology ETF, TECS, made it to the list, gaining around 14% this week as technology stocks fell on hawkish Fed stance toward aggressive rate cuts in 2024.

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

GDXD, which offers inverse leveraged exposure to Global Gold Miners, was one of the top-performing leveraged/ inverse ETFs, returning ~13% last week. Gold prices fell, driven by fading rate cut hopes.

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 stocks fell after Treasury yields edged higher on no specific timeline for rate cuts in 2024.

8. 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 ~12.5% weekly returns amid high Treasury yields.

9. SRTY – ProShares UltraPro Short Russell2000

ProShares UltraPro Short Russell2000, SRTY ETF, which offers 3x daily short leverage to the Russell 2000 Index, also made it to the list this week. Stocks fell on rising yields and uncertainty around any timeline on rate cuts in the December meeting.

10. TZA – Direxion Daily Small Cap Bear 3X Shares

The TZA, Direxion Daily Small Cap Bear 3X Shares, which provides inverse leverage to the US small-cap equity market (Russell2000 Index), also made it to the list, gaining ~11.8% last week. The Russell 2000 index has high weightage to technology stocks, which slid after the release of the minutes of the Fed’s December meeting, highlighting market uncertainty. The index also has high exposure to sectors like industrials, healthcare, etc., which ended in the red last week.

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