Top Performing Leveraged/Inverse ETFs: 10/23/2022

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. KOLD – ProShares UltraShort Bloomberg Natural Gas

KOLD, which offers 2x daily inverse leveraged exposure to natural gas, was present on the top-performing levered/ inverse ETFs list last week. Natural gas prices declined due to lower weather-driven demand and record production levels.

2. ONG – Direxion Daily Oil Services Bull 2X Shares

ONG seeks daily investment results of 200% of the performance of the MVIS US Listed Oil Services 25 Index and was one of the top-performing levered ETFs with ~33% weekly gains on the back of improving investor sentiment on easing Chinese quarantine policies for inbound travelers and OPEC+ output cut.

3. MSOX – AdvisorShares MSOS 2x Daily ETF

MSOX seeks to achieve 2x the total daily return of the AdvisorShares Pure US Cannabis ETF (MSOS) through swap agreements featured on the list with ~32% returns with rising legalization support by the US President. Recently Green Thumb Industries, one of the largest cannabis companies in the U.S., also inked a deal with one of the largest global convenience store chains, Circle K, to open medical marijuana dispensaries adjacent to store locations in Florida.

4. DFEN – Direxion Daily Aerospace & Defense Bull 3X Shares

This ETF that aims to triple the daily return of an index of defense industry stocks was one of the top-performing levered ETFs last week as defense stocks gained on the back of rising global geopolitical tensions. The overall aerospace & defense sector gained by more than 8% in the last five days.

5. FLYU – MicroSectors Travel 3x Leveraged ETN

FLYU tracks 3x the daily price movements of an index of US-listed travel-related companies and made it to the list on expected robust travel demand after two years of travel bans and restrictions.

6. NRGU – MicroSectors U.S. Big Oil Index 3X Leveraged ETN

NRGU which tracks three times the performance of an index of US Oil & Gas companies, also featured on the weekly list returning ~25%. The energy sector gained ~7% and was the best-performing sector in the last five days. Oil price gains were supported by a potential OPEC+ output cut.

7. 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 witnessed improved commodity prices as well as strong corporate data. There are chances of continuation of the existing policies as a result of the Brazilian elections.

8. BULZ – MicroSectors Solactive FANG & Innovation 3X Leveraged ETN

The BULZ ETF was one of the best-performing levered ETFs with over ~24% returns. The ETF focuses on top technology companies domiciled in the U.S. The technology sector gained by more than 4% in the last week ahead of Big Tech earnings reports.

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. SOXL – Direxion Daily Semiconductor Bull 3x Shares

SOXL, which offers 3x daily long leverage to the PHLX Semiconductor Index was a contender on the top performing levered/ inverse ETFs list last week. The overall semiconductor segment increased by almost 6% in the last five days driven by an expected slower pace of interest rate hikes.

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