Top Performing Leveraged/Inverse ETFs: 02/26/2023

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.

LABD, which offers inverse exposure to the US Biotechnology sector, topped the list of the top performing inverse ETFs and gained by ~19% last week on concerns about future interest rate hikes and high inflation. The overall biotech sector declined by ~2% in the last five days.

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

YANG, which offers 3x daily short leverage to the FTSE China 50 Index, was present on the top performing levered/ inverse ETF returning more than 17% last week, as Chinese equities declined amid increasing US-China military tension, rising U.S. interest rates, and not so encouraging economic indicators.

3. BOIL – ProShares Ultra Bloomberg Natural Gas

BOIL, the natural gas ETF featured on the list of top performing levered ETFs and gained more than ~16% in the last week. Natural gas prices rose on increasing LNG exports and forecasts of colder weather conditions.

4. GDXD – MicroSectors Gold Miners -3X Inverse Leveraged ETNs

GDXD, which offers inverse levered exposure to Global Gold Miners, was one of the top inverse ETFs gaining ~16% last week. Gold prices inched lower on a strong U.S. dollar, rising Treasury yields, and the expectation of future interest rate hikes by the Fed.

5. WEBS – Direxion Daily Dow Jones Internet Bear 3X Shares

The WEBS ETF that inversely tracks companies with a solid internet focus was one of the top-performing levered/ inverse ETFs driven by higher benchmark U.S. treasury yield and a rising interest rate environment. The overall IT sector fell by ~2% in the last week and internet software & services registered a fall of 0.35%.

6. 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 over ~12% returns. Travel stocks fell amid stubborn inflation fears and as the Federal Reserve continued its stance on rising interest rates.

7. 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 US stocks fell over a hot inflation report last week. Nine out of 11 S&P sectors ended the week in the red.

8. 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 12% last week. Real estate was the second worst-performing sector falling by ~3.6% amid expectations of higher rates and a stronger-than-expected increase in prices last month.

9. FXP – ProShares UltraShort FTSE China 50

FXP which offers inverse exposure to China’s large cap stocks was another China-focused ETF that gained more than 11% in the last week.

10. NKEQ – AXS 2X NKE Bear Daily ETF

NKEQ which provides inverse exposure to the daily price movement for shares of Nike stock featured on the inverse ETFs list with ~11% weekly gains. The stock plunged last week amid higher inventory build-up and lower consumer spending.

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