If you’re looking for clues about what exchange traded fund (ETF) investors want and what’s really moving in the markets, leveraged and inverse funds are a good way to take the pulse.
Wall Street has further stabilized this month, and no one asset class dominated. Investors sought havens in precious metals, took refuge overseas and were bullish on Treasuries and energy. Here are some of the top leveraged ETFs in the last month:
ProShares Ultra Silver (NYSEArca: AGQ)
It’s little wonder that a leveraged silver ETF would do so well. The poor man’s gold is much cheaper than the yellow metal while still handily outperforming it. Primarily driving the price now is safe-haven buying, driven by beliefs that governments around the world will enact more stimulus and weaken their currencies. There also may be less of the metal to go around here, too. Silver exports from China, the world’s largest, may drop about 40% this year as domestic demand from industry and investors climbs.
Direxion Daily Energy Bull 3x Shares (NYSEArca: ERX)
Energy got a nice boost from a host of solid earnings for big players in the sector. Exxon Mobil (NYSE: XOM), for example, saw its profit surge in the third quarter thanks to higher oil prices. Shell, ConocoPhillips and others have reported similar results. [Oil Exploration ETFs: A Bargain-Hunter’s Dream?]
Direxion Daily 30-Year Treasury Bull 3x Shares (NYSEArca: TMV)