Top Performing Leveraged/Inverse ETFs: 05/22/2022

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. 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 last week as technology stock valuation witnessed a correction in a rising rate environment. The overall IT sector witnessed a fall of ~0.60% in the last five days. Part of the decline also came after Snap’s warning about the deteriorating economy, further indicating a sinking internet sector.

2. SZK – ProShares UltraShort Consumer Goods

SZK, which offers 2x daily short leverage to the Dow Jones U.S. Consumer Goods Index was one of the contenders on the top performing inverse ETFs list, as consumer spending reduced due to rising inflation.
The consumer discretionary sector declined by ~4.8% in the last five days. Moreover, large retailers like Walmart and Target also warned of changing consumer spending patterns.

3. MEXX – Direxion Daily MSCI Mexico Bull 3X Shares

The MEXX ETF made it on the list supported by the country’s GDP growth. The MEXX ETF seeks daily investment results of 300% of the performance of the MSCI Mexico IMI 25- 50 Net Total Return USD Index. The Index comprises large-, mid-and small-cap companies covering ~99% of the free float-adjusted market capitalization in Mexico.

4. SQQQ – ProShares UltraPro Short QQQ

SQQQ ETF offers 3x daily short leverage to the NASDAQ-100 Index, which is heavily weighted on the technology and consumer sectors, made it to the list as these sectors posted declines in the last week on the back of rising interest rates and inflation.

5. SCC – ProShares UltraShort Consumer Services

The SCC ETF offers 2x daily short leverage to the Dow Jones U.S. Consumer Services Index which measures the performance of consumer spending in the U.S. services industry. Overall consumer services fell by more than 7% in the last five days. The ETF focuses on the sectors like retail and consumer services which suffered a decline in the last week.

6. EMTY – ProShares Decline of the Retail Store ETF

EMTY which is designed to gain from the decline of physical retailers was one of the top performing inverse ETFs last week as both multiline, as well as specialty retail, fell by ~24% and ~5%, respectively. Both Target and Walmart came out with disappointing quarterly numbers in the last week. The physical retailers continued to feel the brunt of higher costs and supply chain constraints.

7. BOIL – ProShares Ultra Bloomberg Natural Gas

BOIL, the natural gas ETF was one of the top performing levered ETFs gaining ~11% in the last week. Natural gas prices are gaining on rising demand and flat production growth.

8. UBR – ProShares Ultra MSCI Brazil Capped

UBR, which offers 2x daily long leverage to the MSCI Brazil Index was one of the top performing levered ETFs as the country benefited from strong metal prices and a strong Real against a falling US dollar in the last week.

9. BRZU – Direxion Daily MSCI Brazil Bull 2X Shares

BRZU which provides 2x daily leveraged exposure to an index of large and mid-cap Brazilian companies also made it to the list.

10. JNUG – Direxion Daily Junior Gold Miners Index Bull 2x Shares

JNUG seeks daily investment results of 200% of the performance of the MVIS Global Junior Gold Miners Index. The index tracks the performance of foreign and domestic companies engaging in gold and silver mining. JNUG was one of the candidates on the top-performing levered/ inverse ETFs list driven by a weaker dollar in the last week.

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