Top Performing Leveraged/Inverse ETFs: 08/04/2024

1. UVIX – 2x Long VIX Futures ETF

UVIX, which offers daily 2x leveraged exposure to short-term VIX futures, topped the list of leveraged ETFs as market volatility increased driven by worries about the US market slowdown. Investors fear the Federal Reserve is lagging in cutting interest rates to combat a potential economic downturn. VIX, the CBOE Volatility index more than doubled to ~38 from ~16 in the prior week.

2. UVXY – ProShares Ultra VIX Short-Term Futures ETF

UVXY, which offers leveraged exposure to an index comprised of short-term VIX futures contracts was another volatility-focused fund on the top-performing levered ETFs last week as volatility increased on signs of a slowdown in the US economy.

3. SOXS – Direxion Daily Semiconductor Bear 3x Shares

The SOXS ETF inversely tracks the PHLX Semiconductor Index featured on the list of levered/ inverse ETFs with ~26% returns in the last week after disappointing results from semiconductor maker Intel. The semiconductor sector fell by more than ~10% along with the broader decline in the market. Technology also registered a fall of over 7% amid a major tech sell-off as investors’ concerns rise around high interest rates and recession fears.

4. 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 ~26% returns. Travel stocks fell amid weaker-than-expected economic and employment data.

5. 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 increased volatility and fears of an economic slowdown.

6. 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 ~22% last week. The Russell 2000 index has high weightage to technology stocks which fell in the middle of a major sell-off. The index also has high exposure to sectors like industrials, healthcare, etc. which ended in the red last week.

7. SARK – AXS Short Innovation Daily ETF

SARK provides daily 1x inverse exposure to ARK Innovation ETF composed of companies engaging in disruptive innovation like artificial intelligence, DNA technologies, energy innovation, automation, etc. Technology stocks plummeted amid market volatility, rising unemployment, and recession fears.

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 was another technology-focused fund that featured on the list of top-performing inverse ETFs with ~19% weekly returns.

9. 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 disappointing jobs data and signs of an economic slowdown.

10. 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 fall in yields on recessionary fears, making Treasuries a safe-haven investment.

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