Top Performing Leveraged/Inverse ETFs: 03/17/2024

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 more than 15% weekly return, as Cannabis stocks surged last week, fueled by optimism about potential regulatory changes. The prospect of Germany legalizing recreational use in 2024 further bolstered investor confidence.

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

NRGU, which tracks three times the performance of an index of US oil and gas companies, ranked second on the weekly list of top-performing leveraged/ inverse ETFs returning ~15% as oil prices extended their rally last week, fueled by concerns about tight supply after the IEA warned of a potential supply shortfall this year.

3. WTIU – MicroSectors Energy 3X Leveraged ETNs

WTIU, an exchange-traded note that tracks 3x of the daily price movements of an index of US-listed energy and oil companies, was another top-performing leveraged ETF last week with the energy sector gaining by over 3% in the last five days.

4. LABD – Direxion Daily S&P Biotech Bear 3x Shares

The biotech fund, LABD which offers inverse exposure to the US Biotechnology sector gained by over 13% last week with the healthcare sector registering a fall of over 0.70% and biotech was down ~1.5% in the last five days on rising inflation fears and expectations of sustained interest rate hikes dampening overall sentiment.

5. SOXS – Direxion Daily Semiconductor Bear 3x Shares

The SOXS ETF inversely tracks the performance of the PHLX Semiconductor Index, ranked fifth on the list of levered/ inverse ETFs with 12.8% returns in the last week. The semiconductor sector fell ~0.2% along with the broader decline in the market around fading optimism for aggressive rate cuts.

6. OILU – MicroSectors Oil & Gas Exp. & Prod. 3x Leveraged ETN

OILU which provides 3x daily leveraged exposure to a tier-weighted index of US firms involved in oil and gas exploration and production was another oil ETF that made it on the list with over 11% weekly gains.

7. KOLD – ProShares UltraShort Bloomberg Natural Gas

KOLD, which offers 2x daily inverse leveraged exposure to natural gas, was one of the contenders on the list of top performing levered/ inverse ETFs returning ~10.8% last week, as natural gas prices dipped, pressured by ample U.S. natural gas supplies.

8. CWEB – Direxion Daily CSI China Internet Index Bull 2x Shares

The Direxion Daily CSI China Internet Index Bull 2x Shares seeks daily investment results of 200% of the performance of the CSI Overseas China Internet Index also made it on the list with over 10% returns last week driven by a strong start to the Year of the Dragon, foreign inflow, and as investors turn bullish on China’s rebound.

9. TMV – Direxion Daily 20+ Year Treasury Bear 3x Shares

TMV, which offers 3x short leveraged exposure to the NYSE 20 Year Plus Treasury Bond Index, made it to the list as bond yield moved higher to 4.56% from 4.41%, a week earlier, as interest rates are expected to hold steady this month, and the outlook for future changes seems even clearer with the U.S. Treasury Secretary dampening hopes of a return to pre-pandemic levels.

10. DRV – Direxion Daily Real Estate Bear 3X Shares

The DRV ETF, which offers -3x daily leverage to an index comprised of U.S. REITs, was one of the top-performing inverse ETFs returning more than 9% last week. The real estate sector fell by ~2.6% last week and was the worst performing sector amid high Treasury yields and hawkish Fed fears.

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