Top Performing Leveraged/Inverse ETFs: 05/07/2023

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.

MSOX, which seeks to achieve 2x the total daily return of the AdvisorShares Pure U.S. Cannabis ETF (MSOS) through swap agreements, featured on the list with more than 24% weekly returns as stocks rise after the Marijuana Research Bill was signed into law by President Joe Biden last week.

2. KOLD – ProShares UltraShort Bloomberg Natural Gas

KOLD, which offers 2x daily inverse leveraged exposure to natural gas, featured on the list of top performing levered/ inverse ETFs returning ~24% last week, as natural gas prices fell amid mild temperatures and softer demand.

3. LABU – Direxion Daily S&P Biotech Bull 3x Shares

The biotech fund, LABU, gained more than 19% as biotech stocks got a boost from an expected spike in deal activity in the industry. Deals by large pharma companies like Merck & Co. and GSK raised investor interest.

4. 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 U.S. large banks, featured on the top-performing inverse ETFs list. The Financial sector lost ~0.25%, with the commercial banking segment declining by ~1.5% in the last week. The banking stocks continued to plummet after the fall of First Republic, led by smaller banks with large exposure to uninsured deposits and a few commercial banks.

5. NRGD – MicroSectors U.S. Big Oil Index -3X Inverse Leveraged ETN

NRGD ETF, which provides inverse exposure to the performance of U.S. Oil, Gas & Consumable Fuels, featured on the list of the top performing levered/ inverse ETFs, gaining over 16%. Oil prices fell upon concerns over the gloomy global economic outlook and crisis in the U.S. banking industry.

6. WTID – MicroSectors Energy 3X Inverse Leveraged ETNs

WTID was another inverse energy ETF on the list, with over ~16% weekly gains as the energy sector fell by ~0.20% in the last five days. The oil, gas, and consumable fuels segment was down ~0.40%.

7. 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 15.5% last week as gold rose amid economic uncertainty, the crisis in the U.S. banking industry, and upcoming U.S. CPI data.

8. OILD – MicroSectors Oil & Gas Exp. & Prod. -3x Inverse Leveraged ETN

OILD ETF, which provides exposure to the inverse performance of U.S. Oil, Gas & Consumable Fuels, was another oil-focused fund on the list of top inverse ETFs as the energy sector suffered a fall of ~0.20%+ in the last week.

9. PSDN – AdvisorShares Poseidon Dynamic Cannabis ETF

PSDN fund invests in the U.S., and foreign companies involved in the marijuana and hemp industry featured on the weekly list of levered ETFs as cannabis stocks got a boost from the U.S. President’s legalization of the Marijuana Research Bill.

10. SCO – ProShares UltraShort Bloomberg Crude Oil

This ETF offers 2x daily short leverage to the broad-based Dow Jones-UBS Crude Oil Sub-Index and made it to the list with ~12% weekly gains driven by the depressing global market outlook and distress in the U.S. banking industry.

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