Top Performing Leveraged/Inverse ETFs: 03/26/2023

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.

YINN, which seeks daily investment results of 300% of the performance of the FTSE China 50 Index and provides leveraged exposure to the Chinese large-cap sector, was the top levered ETF last week, supported by a recovering economy.

2. MEXX – Direxion Daily MSCI Mexico Bull 3X Shares

The MEXX ETF made it on the list with ~13% returns in the last week. The ETF benefited from a weaker dollar this week and rising commodity prices, as well as strong Mexican economic data.

3. BABX – GraniteShares 1.75x Long BABA Daily ETF

BABX provides 1.75x leveraged exposure to the daily price movement for shares of Alibaba Group Holding Limited stock. The stock gained after the Chinese internet giant Tencent Holdings reported upbeat earnings and as regulatory fears around stocks like Alibaba have been subsiding.

4. SVIX – -1x Short VIX Futures ETF

SVIX, which tracks an index that provides daily inverse exposure to a portfolio comprising first- and second-month VIX futures positions with a weighted average maturity of one month, made it to the list with over 10% weekly gains. VIX, the CBOE Volatility index, fell to 20.60 from the 24 mark a week ago. Volatility stayed low on investor confidence as markets survived even in the face of massive bank collapses.

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

LABD, which offers inverse exposure to the US Biotechnology sector, gained by ~9% last week on concerns after the SVB collapse, which focused on start-up/ biotech sector financing.

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

FNGU was also on the list of top-performing levered ETFs with over ~8.8% 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 increased last week, driven by a smaller interest rate hike. Over IT sector gained by ~0.90% in the last five days.

7. XPP – ProShares Ultra FTSE China 50

Another China-focused ETF, XPP that, offers 2x daily long leverage to the FTSE/Xinhua China 25 Index, ranked among the top levered ETFs. The ETF gained more than 8% in the last week.

8. CWEB – Direxion Daily CSI China Internet Index Bull 2x Shares

The Direxion Daily CSI China Internet Index Bull 2x Shares seeks daily investment results of 200% of the performance of the CSI Overseas China Internet Index featured on the list with over ~8% returns last week after China reopened its borders.

9. GDXU – MicroSectors Gold Miners 3X Leveraged ETN

GDXU is a leveraged equity fund that provides 3x exposure to an index comprised of two of the largest gold miners’ ETFs, viz VanEck Gold Miners ETF (GDX) and VanEck Junior Gold Miners ETF (GDXJ), that invest in the global gold mining industry. GDXU ranked on the list of top performing levered ETFs and returned over 8% last week as gold rose, driven by its safe-haven credibility, and as US dollar and treasury yields fall.

10. EDC – Direxion Daily MSCI Emerging Markets Bull 3x Shares

The EDC ETF, which offers 3x daily long leverage to the broad-based MSCI Emerging Markets Index, made it to the list as markets rallied after China reopening, a lower US dollar, and rising commodity prices.

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