Top Performing Leveraged/Inverse ETFs: 10/24/2021

1. (BZQ A-) – ProShares Ultrashort MSCI Brazil Capped ETF

The BZQ ETF offers a good way to play the bearish short-term outlook for Brazilian large cap stocks. This inverse ETF returned more than 20% in the last week as the Brazil market underperformed over concerns about the country’s financial outlook due to anticipated government spending as indicated by President Jair Bolsonaro.

2. (TPOR C+) – Direxion Daily Transportation Bull 3X Shares

The TPOR ETF that tracks the performance of companies involved in road, rail, air travel, marine transport, air freight, and logistics returned ~11% in the last week. The transportation ETF gained on the likelihood of an improving economy driven by successful vaccination drives and the approaching holiday season.

3. (YINN A+) – Direxion Daily FTSE China Bull 3X Shares

The YINN ETF provides a 3x daily long leverage to Chinese large cap stocks. The ETF returned ~11% in the last week. Investors’ confidence was restored in Chinese stocks after China’s Evergrande paid off bond interest and averted a default previous week.

4. (DPST B+) – Direxion Daily Regional Banks Bull 3X Shares

The DPST ETF provides leveraged exposure to U.S. regional banks. The regional banks benefited from the reopening of economies, rising demand, improving supply chains, and Fed taper talks.

5. (BNKU ) – MicroSectors U.S. Big Banks Index 3X Leveraged ETNs

Another financial ETF, BNKU, made it to the top ten list returning ~10% in the last week. Some of the country’s biggest banks posted solid quarterly results on improving economic prospects and fewer bad loans.

6. (CWEB A) – Direxion Daily CSI China Internet Index Bull 2x Shares

The Chinese technology stocks that were earlier battered, given the government’s crackdown on tech and internet industries, rallied this week. Stocks gained on improving prospects of China’s tech industry as the government strives to become more self-reliant. The Renminbi also gained against the USD.

7. (NAIL C+) – Direxion Daily Homebuilders & Supplies Bull 3X Shares

The NAIL ETF that focuses on the US housing segment returned ~9% in the last week, supported by high housing prices and improving homebuyers’ confidence.

8. (AGQ A-) – Proshares Ultra Silver

AGQ ETF, which offers 2x daily long leverage to the Silver bullion, returned more than 8% last week. The silver ETF gained on rising inflation worries and global risks. A pullback in the dollar and US Treasury yields also supported demand for the white metal.

9. (FAS A-) – Direxion Daily Financial Bull 3X Shares

The FAS ETF offers 3x daily long leverage to the Russell 1000 Financial Services Index. The Financial ETF got a boost from rising rates and upbeat earnings results from big banks. Reopening of economies, improving investor confidence, the strong housing market, etc are acting as tailwinds for the financial sector.

10. (FNGU ) – MicroSectors FANG+™ Index 3X Leveraged ETN

FNGU offers exposure to five core technology companies – Facebook, Amazon, Apple, Netflix, and Alphabet Inc., and five other technology growth stocks, including Alibaba, Baidu, NVIDIA, Tesla, and Twitter. Investors await Q3 results from Microsoft, Alphabet, Apple, and Amazon.com this week. Facebook rose on user growth and a potential $50 billion stock repurchases, while Amazon.com seems to be a perfect stock to counter inflation as well as distribution challenges.