For the past month, leveraged exchange-traded fund (ETF) traders have been feasting off opportunities in gold, biotech, large caps, and semiconductors as the U.S.-China trade deal went awry. The flight to safe haven assets may have spurred a bullish sentiment in gold, but other funds accumulating assets the past month were in large cap equities, biotech companies, and semiconductors.
A cautious, but still bullish sentiment could be ahead, which could provide the fuel for more leveraged bull plays.
“I’ve been fascinated watching not only how the S&P 500 itself has recovered but also how the individual sectors within the S&P 500 have recovered,” wrote John Jagerson of Investopedia. “The technology sector has been the strongest performer by far.”
Here are 5 Leveraged ETFs With Biggest 1-Month Fund Flows as of May 20, 2019, according to fund flow data from XTF.com.
1. Direxion Daily Gold Miners Bull 3X Shares (NYSEArca: NUGT) – $192.79 million fund flows: The investment seeks daily investment results of 300% of the daily performance of the NYSE Arca Gold Miners Index. The index is a comprised of publicly traded companies that operate globally in both developed and emerging markets, and are involved primarily in mining for gold and, in mining for silver. It is non-diversified.
2. Direxion Daily Junior Gold Miners Index Bull 3X Shares (NYSEArca: JNUG) – $188 million: The investment seeks daily investment results of 300% of the daily performance of the MVIS Global Junior Gold Miners Index. The index includes companies from markets that are freely investable to foreign investors, including “emerging markets,” as that term is defined by the index provider. It is non-diversified.
3. Direxion Daily S&P Biotech Bull 3X Shares (NYSEArca: LABU) – $130.09 million: seeks daily investment results of 300% of the daily performance of the S&P Biotechnology Select Industry Index (“index”). The index is designed to measure the performance of the biotechnology sub-industry based on the Global Industry Classification Standards (“GICS”). The fund is non-diversified.
4. GS Finance Large Cap Growth Index-Linked ETN (NYSEArca: FRLG) $59.05 million: The Large Cap Growth Index-Linked ETN due April 3, 2028 are linked to the performance of the Russell 1000 Growth Total Return Index. The Russell 1000 Growth Total Return Index measures the performance of the large-capitalization growth sector of the U.S. equity market. The Index measures the performance of equity securities of Russell 1000 Index issuers with relatively higher price-to-book ratios and higher forecasted growth.
5. Direxion Daily Semiconductor Bull 3X Shares (NYSEArca: SOXL) – $49.93 million: seeks daily investment results of 300% of the daily performance of the PHLX Semiconductor Sector Index. The index measures the performance of domestic companies engaged in the design, distribution, manufacture and sale of semiconductors. The fund is non-diversified.
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