Leveraged ETFs aim to amplify and sometimes invert the daily return of an underlying index or asset, usually by a factor of 2 or 3 times the normal return. There are plenty of leveraged ETFs on the market, with varying objectives and degrees of leverage, but these securities have certain risks and cons that investors should be aware of.
Leveraged ETFs use debt and/or derivatives, such as options, to generate double or triple the daily performance of a certain index or asset class. Leveraged ETFs can be either long (bull) or short (bear) ETFs.
It is worth noting though that while leveraged ETFs certainly have their purpose for short-term investing, for example, utilizing a triple-leveraged ETF as a hedge to protect a short position, long-term investors should be cautious of leveraged ETFs.
For investors looking for more rapid gains, and willing to bear the risks, here are the 5 best performing Direxion Leveraged 3X ETFs over the past month:
1. The Direxion Daily Gold Miners Index Bull 3X Shares (NUGT) seeks daily investment results, before fees and expenses, of 300% of the performance of the NYSE Arca Gold Miners Index. There is no guarantee the fund will meet its stated investment objectives.
This leveraged ETF seeks a return that is 300% of the return of its benchmark index for a single day. The fund should not be expected to provide three times or negative three times the return of the benchmark’s cumulative return for periods greater than a day. NUGT has an expense ratio of 1.23% and is currently up 85.37% as of June 27, 2019.
2. The Direxion Daily Junior Gold Miners Index Bull 3X Shares (JNUG) seeks daily investment results, before fees and expenses, of 300% of the performance of the MVIS Global Junior Gold Miners Index. There is no guarantee this fund will meet its stated investment objectives.
This leveraged ETF seeks a return that is 300% of the return of its benchmark index for a single day. The fund should not be expected to provide three times or negative three times the return of the benchmark’s cumulative return for periods greater than a day. JNUG has an expense ratio of 1.17% and is currently up 81.34% as of June 27, 2019.
3. The Direxion Daily MSCI Brazil Bull 3X Shares (BRZU) seeks daily investment results, before fees and expenses, of 300% of the performance of the MSCI Brazil 25/50 Index. There is no guarantee that the fund will achieve its stated investment objective.
This leveraged ETF seeks a return that is 300% of the return of its benchmark index for a single day. The fund should not be expected to provide three times the return of the benchmark’s cumulative return for periods greater than a day. BRZU has an expense ratio of 1.35% and is currently up 38.62% as of June 27, 2019.
4. The Direxion Daily Russia Bull 3X (RUSL) Shares seeks daily investment results, before fees and expenses, of 300% performance of the MVIS Russia Index which invests in Russian stocks. There is no guarantee that these funds will achieve their stated investment objectives.
This leveraged ETF seeks a return that is 300% the return of their benchmark index for a single day. The fund should not be expected to provide three times or negative three times the return of the benchmark’s cumulative return for periods greater than a day. RUSL has an expense ratio of 1.36% and is currently up 32.04% as of June 27, 2019.
5. The Direxion Daily Latin America Bull 3X (LBJ) Shares seeks daily investment results, before fees and expenses, of 300% of the performance of the S&P Latin America 40 Index. There is no guarantee that the fund will achieve its stated investment objective.
This leveraged ETF seeks a return that is 300% the return of its benchmark index for a single day. The fund should not be expected to provide three times the return of the benchmark’s cumulative return for periods greater than a day. LBJ has an expense ratio of 1.49% and is currently up 30.19% as of June 27, 2019.
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