Although the aerospace and defense industry is perceived as being beholden to Uncle Sam’s whims, the allure of late-cycle sectors, including industrials, in a rising rate environment remains in place. Industrials perform well when interest rates rise because rising rates can go hand-in-hand with economic growth. Increased infrastructure spending is also seen as a catalyst for industrial stocks and ETFs.

Related: Top 68 Inverse Equity ETFs

For DUSL, the near-term theme is clear: it’s all about earnings. This week, 16.58% of the S&P Industrial Select Sector Index reports third-quarter earnings and next week, that number jumps to over 58%, according to Direxion data.

For more on leveraged ETFs, please visit our Leveraged and Inverse Channel.

Subscribe to our free daily newsletters!
Please enter your email address to subscribe to ETF Trends' newsletters featuring latest news and educational events.