Top Performing Leveraged/Inverse ETFs: 03/12/2023

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.

UVIX, which offers daily 2x leveraged exposure to short-term VIX futures, was the top performing levered ETF as VIX, the CBOE volatility index, gained to ~26.5 from ~18.6 in the last week. Market volatility increased as the banking sector suffered after failures at large U.S. banks like SVB Financial Group and Signature Bank during the week.

2. BNKD – MicroSectors U.S. Big Banks Index -3X Inverse Leveraged ETNs

BNKD, which tracks three times the inverse performance of an equal-weighted index of US large banks, featured on the top-performing inverse ETFs list. The financials sector was the worst performing sector last week, adversely affected by the failures at SVB Financial Group and Signature Bank, and lost ~12%, with the commercial banking segment declining by ~17% in the last week.

3. KOLD – ProShares UltraShort Bloomberg Natural Gas

KOLD, which offers 2x daily inverse leveraged exposure to natural gas, featured on the list of top performing inverse ETFs returning ~40% last week, as natural gas prices continued to fall after a change in the weather model readings for higher temperatures, prompting another market crash.

4. LABD – Direxion Daily S&P Biotech Bear 3x Shares

LABD, which offers inverse exposure to the US Biotechnology sector, gained by ~32% last week on concerns after the Silicon Valley Bank collapse, which focused on start-up/ biotech sector financing. The biotech sector fell by 1.6% in the last week.

5. UVXY – ProShares Ultra VIX Short-Term Futures ETF

UVXY, which offers leveraged exposure to an index comprised of short-term VIX futures contracts, was one of the top-performing levered ETFs this week as volatility increased amid the recent chaos in the U.S. banking and financial sectors.

6. SPKY – ConvexityShares Daily 1.5x SPIKES Futures ETF

SPKY fund offers 150% exposure to a daily rolling of long near-term SPIKES futures contracts and focuses on active traders and speculative investors. The ETF was one of the top performing levered ETFs returning ~31% in the last week.

7. FAZ – Direxion Daily Financial Bear 3X Shares

FAZ, which offers 3x daily short leverage to the Russell 1000 Financial Services Index, also made it to the list as the financials sector lost ~12% in the last week after the failure of prominent U.S. banks. Many bank stocks were halted time-to-time for volatility during that day.

8. TZA – Direxion Daily Small Cap Bear 3X Shares

The TZA, Direxion Daily Small Cap Bear 3X Shares, which provides inverse leverage to US small-cap equity market (Russell2000 Index), also made it to the list, gaining over 27% last week. The Russell 2000 index has high weightage to sectors like financial, consumer discretionary, technology, healthcare, etc., which ended in the red last week.

9. SRTY – ProShares UltraPro Short Russell2000

ProShares UltraPro Short Russell2000, SRTY ETF, which offers 3x daily short leverage to the Russell 2000 Index, was also present on the list this week. Stocks fell as a result of a financial shock wave that swept across the U.S. market.

10. 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 last week. All S&P sectors ended the week in the red.

For more news, information, and analysis, visit the Leveraged & Inverse Channel.