Top Performing Leveraged/Inverse ETFs: 01/12/2025

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. BOIL – ProShares Ultra Bloomberg Natural Gas

BOIL, the natural gas ETF topped the list of top-performing leveraged ETFs and gained more than 31% in the last week. An icy January and global geopolitical tensions have driven up natural gas prices.

2. UVIX – 2x Long VIX Futures ETF

UVIX, which offers daily 2x leveraged exposure to short-term VIX futures, ranked second on the list of leveraged ETFs. Market volatility surged as investors grappled with uncertainty from Trump’s tariffs, historically high stock valuations, and rising interest rates. VIX, the CBOE Volatility index has increased to ~19 from ~16.8 in the prior week.

3. ETHD – ProShares UltraShort Ether ETF

ETHD which tracks -2x the daily price movements of an index that measures the price of Ethereum ETF ranked third on the ETFs on the list with ~20% weekly gains. Crypto assets plummeted last week after strong U.S. labor market data dashed hopes for an interest rate cut by the Federal Reserve.

4. YANG – Direxion Daily FTSE China Bear 3X Shares

YANG, which offers 3x daily short leverage to the FTSE China 50 Index featured on the list of levered/ inverse ETFs returning nearly ~18% last week. Asia-Pacific markets plunged last week driven by concerns that the Federal Reserve might delay its interest rate cuts due to persistent inflation. This anxiety was further amplified by China’s deepening consumer price deflation.

5. UVXY – ProShares Ultra VIX Short-Term Futures ETF

UVXY, which offers leveraged exposure to an index comprised of short-term VIX futures contracts was another volatility-focused fund on the top-performing levered ETFs last week as volatility increased.

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

The DRV ETF, which offers -3x daily leverage to an index of U.S. REITs, was one of the top-performing inverse ETFs returning ~13% last week. The rate-sensitive real estate sector declined as investors anticipated the Federal Reserve would maintain its current interest rate policy amid robust U.S. labor market data.

7. FXP – ProShares UltraShort FTSE China 50

FXP, which offers inverse exposure to China’s large-cap stocks was another China-focused ETF that gained ~12% in the 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 the US small-cap equity market (Russell2000 Index) also made it to the list, gaining ~10.8% last week. A surge in job growth and a falling unemployment rate of 4.1% in December painted a picture of a robust U.S. economy. This unexpectedly strong labor market data triggered a sell-off as investors braced for the possibility of higher interest rates.

9. SRTY – ProShares UltraPro Short Russell2000

ProShares UltraPro Short Russell2000, SRTY ETF which offers 3x daily short leverage to the Russell 2000 Index, was another contender on the list with ~10.7% returns in the last week.

10. BERZ – MicroSectors Solactive FANG & Innovation -3X Inverse Leveraged ETN

The BERZ ETF provides daily -3x inverse exposure to an index of FANG and technology companies also featured on the list of top-performing inverse ETFs with ~10% weekly returns amid uncertainty around interest rate outlook. Technology was the worst performing sector losing nearly 4% in the last five days.

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