Top Performing Leveraged/Inverse ETFs: 04/14/2024

1. CARD – MAX Auto Industry -3x Inverse Leveraged ETN

CARD tracks -3x of the daily price movements of an index consisting of US-listed companies in the broader auto industry ecosystem topped the inverse ETFs list with more than 13% weekly gains as a strong consumer price index report fueled inflation fears, dashing hopes for an imminent Federal Reserve interest rate cut.

2. BNKD – MicroSectors U.S. Big Banks Index -3X Inverse Leveraged ETNs

BNKD which tracks three times the inverse performance of an equal-weighted index of US large banks ranked second on the top-performing inverse ETFs list. The Financial sector lost over ~4% with the commercial banking segment declining by ~5.5% in the last week as investor confidence dropped after banks delivered disappointing earnings reports.

3. FAZ – Direxion Daily Financial Bear 3X Shares

FAZ, which offers 3x daily short leverage to the Russell 1000 Financial Services Index also made it to the list as the financials sector was the second worst performing sector losing over ~4% in the last week. The financials sector fell on economic growth concerns and dismal banking quarterly results in the face of persistent inflation.

4. SMDD – ProShares UltraPro Short MidCap400

SMDD ETF which offers 3x daily short leverage to the S&P MidCap 400 Index was another best performing inverse ETF, returning ~9.6% last week. This ETF gained as stocks fell amid robust reading on the Consumer Price Index which ignited concerns about rising inflation, dashing investor hopes for a near-term interest rate cut.

5. 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 ~8.9% returns. Travel stocks fell amid rising fuel costs, expected to push inflation even higher in the coming months.

6. 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 uncertainty around any timeline for rate cuts, persistent inflation, and lackluster performances from the banking sector.

7. 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 over ~8% last week. The overall real estate sector fell by ~5.5% as higher for longer rates are expected to hurt the housing market. It was the worst performing sector last week.

8. TZA – Direxion Daily Small Cap Bear 3X Shares

The TZA, Direxion Daily Small Cap Bear 3X Shares which provides inverse leverage to US small-cap equity market (Russell2000 Index) also made it to the list, gaining ~8.6% last week. The Russell2000 index has high weightage on the financials sector that ended in the red last week.

9. AAPU – Direxion Daily AAPL Bull 2X Shares

AAPU which provides 2x leveraged exposure to the daily price movement for shares of Apple stock gained on the company’s announcement of a revamp in its entire Mac line with new AI-focused processors.

10. 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 quarterly results from major banks and expectations of higher for longer interest rates.

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