Top Performing Leveraged/Inverse ETFs: 01/15/2023

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.

CONL ETF, which provides 1.5x leveraged exposure to the daily price movement for shares of Coinbase stock topped the list with nearly ~81% weekly returns as Fed signals a rate hike slowdown (a hike of 25 basis points in the future lower from the anticipated 50 bps). Many growth and beta stocks moved higher after this news.

2. EVAV – Direxion Daily Electric and Autonomous Vehicles Bull 2X Shares

EVAV, which tracks 2x the daily price movements of an index of US-listed electric and autonomous vehicles companies, was one of the contenders on the list of top-performing levered ETFs after the Biden administration proposed plans to encourage the electric vehicle market in the country. With inflation easing and rising consumer confidence demand for EVs should also increase.

3. FLYU – MicroSectors Travel 3x Leveraged ETN

FLYU tracks 3x the daily price movements of an index of US-listed travel-related companies and made it to the list supported by an expected robust travel demand, easing inflation, rising consumer confidence demand, and a strong outlook for the global economy after China reopening.

4. TARK – AXS 2X Innovation ETF

TARK is an actively-managed fund-of-fund that seeks to achieve 2x the return, for a single day, of the ARK Innovation ETF (ARKK), also featured on the list of best-performing levered ETFs with ~30% weekly gains as growth and beta stocks moved higher on expectations of a slower pace of rate hikes.

5. FNGU – MicroSectors FANG+™ Index 3X Leveraged ETN

FNGU featured on the list of top-performing levered ETFs with over ~27% weekly returns. FNGU offers exposure to five core technology companies – Facebook, Amazon, Apple, Netflix, and Alphabet Inc., as well as five other technology growth stocks, including Alibaba, Baidu, NVIDIA, Tesla, and Twitter. Technology stocks got a boost last week as investors shook off some anxiety, driven by hopes of a smaller interest rate hike in the future supported by a strong CPI report.

6. WEBL – Direxion Daily Dow Jones Internet Bull 3X Shares

WEBL, providing 3x leveraged daily exposure to an index of the largest U.S. internet companies, was present on the list with over ~21% returns in the last week as technology stocks gained on the back of easing inflation data and hopes for slower increases to the interest rate.

7. AMZU – Direxion Daily AMZN Bull 1.5X Shares ETF

AMZU provides 1.5x leveraged exposure to the daily price movement for shares of Amazon stock. Several technology and growth stocks soared higher as the Fed signaled a rate hike slowdown in the future. U.S. Treasury yields also moved downward. The overall IT sector gained by close to ~4% in the last five days, and the tech-heavy Nasdaq was the best-performing index for the week.

8. SOXL – Direxion Daily Semiconductor Bull 3x Shares

SOXL, which offers 3x daily long leverage to the PHLX Semiconductor Index, featured on the list of the top performing levered/ inverse ETFs last week. The overall semiconductor segment increased by around ~5% in the last five days after the indication of a slower pace of interest rate hikes by the Fed.

9. HIBL – Direxion Daily S&P 500 High Beta Bull 3X Shares

The HIBL ETF provides 3x daily leveraged exposure to a beta-weighted index of 100 highest-beta stocks in the S&P 500. Many S&P 500 sectors rose last week, with communication, IT, and energy, each gaining by over 3%. Stocks gained on signs of easing inflation and a strong CPI report.

10. FNGG – Direxion Daily Select Large Caps & FANGs Bull 2X Shares

Another tech-focused ETF, FNGG which provides 2x the daily price movements of an equal-weighted index consisting of FANG and other growth and technology stocks was present on the list with ~18% weekly returns.

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