Top Performing Leveraged/Inverse ETFs: 04/07/2024

1. 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 returned over ~21% last week amid Fed rate cut buzz and positive US jobs data. Moreover, mining stocks can magnify price movements of the yellow metal for gold investors.

2.AGQ – Proshares Ultra Silver

AGQ ETF which offers 2x daily long leverage to the Silver bullion returned more than 20% last week. The silver ETF gained, defying a strong US dollar after positive US jobs data fueled speculation of an interest rate cut by the Federal Reserve.

3. UVIX – 2x Long VIX Futures ETF

UVIX, which offers daily 2x leveraged exposure to short-term VIX futures, ranked third among the top-performing leveraged ETFs as market volatility increased driven by the Fed’s unclear rate decision and as investors grapple with economic data, company news, and Mideast tensions. VIX, the CBOE Volatility index increased to over ~15 from ~13.7 in the prior week.

4. FBL – GraniteShares 1.5x Long Meta Daily ETF

FBL provides 1.5x leveraged exposure to the daily price movement for shares of Meta Platforms and was one of the top leveraged ETFs last week. Shares of Facebook’s parent company, Meta stood out for its strong fundamentals within the “Magnificent Seven” tech giants and provided an attractive option for investors seeking a balance between value and growth.

5. JNUG – Direxion Daily Junior Gold Miners Index Bull 2x Shares

JNUG seeks daily investment results of 200% of the performance of the MVIS Global Junior Gold Miners Index. The index tracks the performance of foreign and domestic companies engaging in gold and silver mining. JNUG was another precious metals candidate on the top-performing levered/ inverse ETFs list returning over ~16% last week as gold ascends amid anticipation of a reduction in interest rates and strong employment data.

6. NRGU – MicroSectors U.S. Big Oil Index 3X Leveraged ETN

NRGU, which tracks three times the performance of an index of US oil and gas companies, featured on the weekly list of top-performing leveraged/ inverse ETFs returning ~16% as geopolitical turmoil in oil hotspots pushes oil prices higher.

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

The biotech fund, LABD which offers inverse exposure to the US Biotechnology sector gained almost 16% last week with the healthcare sector registering a fall of over 2.5% and biotech was down ~4.7% in the last five days. Healthcare stocks fell after the US government set lower-than-anticipated reimbursement rates for Medicare Advantage, raising concerns about future profitability.

8. WTIU – MicroSectors Energy 3X Leveraged ETNs

WTIU, an exchange-traded note that tracks 3x of the daily price movements of an index of US-listed energy and oil companies, was another top-performing leveraged ETF last week with the energy sector gaining by over 2.4% in the last five days. Energy was the best performing sector last week.

9. NUGT – Direxion Daily Gold Miners Index Bull 2x Shares

Another gold ETF, NUGT seeks daily investment results of 200% of the performance of the NYSE Arca Gold Miners Index, ranked among the top levered ETFs. The ETF gained more than 14% in the last week.

10. 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 geopolitical tensions and an unclear rate cut stance.

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