The Right Leveraged ETFs, Right Now

Data indicate plenty of risk-tolerant traders continue to embrace leveraged exchange traded funds in search of outsized, short-term gains.

Just last month, the ProShares Ultra Russell2000 (NYSEArca: UWM), a double leveraged bet on the Russell 2000, and the ProShares Ultra S&P500 ETF (NYSEArca: SSO), which attempts to deliver twice the daily returns of the S&P 500, hauled in $3.3 billion combined. [Some Leveraged ETFs Gained Supporters in March]

Additionally, the crisis in Ukraine stoked increased activity in triple-leveraged Russia ETFs as the Direxion Daily Russia Bear 3x Shares (NYSEArca: RUSS) and the Direxion Daily Russia Bull 3x Shares (NYSEArca: RUSL) repeatedly saw higher volume and increased creation activity during March.[White House is a Bad Place for ETF Advice]

The latter point illustrates the fact profitable use of leveraged ETFs usually involves good timing. And that is what we’ll address here: Some leveraged ETFs, both bullish and bearish, that due to current market conditions, may be worth considering for risk-tolerant traders. Let’s get started with the…