Top Performing Leveraged/Inverse ETFs: 07/14/2024

1. NAIL – Direxion Daily Homebuilders & Supplies Bull 3X Shares

The NAIL ETF focusing on the US housing segment topped the list of top performing levered ETFs returning over 36% amid expectations of the Fed lowering rates as soon as September which should bring down the mortgage rates. Real estate was the top performing sector returning ~4.6% last week.

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 ranked second on the list of top-performing levered ETFs as the U.S. electric vehicle sales grew by ~11% year over year in the second quarter.

3. DPST – Direxion Daily Regional Banks Bull 3X Shares

DPST which provides 3x leveraged exposure to an index of US regional banking stocks was one of the top-performing levered ETFs. Financials was the second best performing sector returning ~3.6% last week on higher profits posted by JPMorgan Chase in its second quarter.

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

The biotech fund, LABU gained ~24% and was the top performing levered ETF on the list last week as the biotech sector gained by more than 2%. Last week’s plunge in U.S. Treasury yields and expected rate cuts fueled a rally in growth stocks, particularly those in the biotech sector. Yield on 10-year U.S. Treasuries dropped below 4.2% yield after the release of the CPI data last week.

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

MEXX ETF made it to the list of leveraged ETFs with nearly 24% returns last week. Markets soared on optimism around Powell’s speech indicating if economic reports are positive, the US might lower interest rates, which is good for currencies from countries with high interest rates, like Mexico.

6. CARU – MAX Auto Industry 3X Leveraged ETN

CARU, an ETN that tracks 3x of the daily price movements of an index consisting of auto industry companies listed in the U.S. was another electric vehicle focused fund with ~22% weekly returns driven by higher EV sales in the second quarter.

7. URTY – ProShares UltraPro Russell2000

The URTY ETF provides leveraged exposure to the U.S. small cap sector and ranked among the top levered ETFs this week. Small cap stocks ended higher as investors grew optimistic about the 2024 rate cut providing much-needed credit access and benefits to smaller domestic businesses.

8. TNA – Direxion Daily Small Cap Bull 3X Shares

TNA ETF which offers 3x daily long leverage to the Russell 2000 Index and provides leveraged exposure to the U.S. small cap sector was another small cap fund on the top levered ETFs’ list with ~18.5% weekly gains.

9. PILL – Direxion Daily Pharmaceutical & Medical Bull 3X Shares

The PILL ETF tracks the performance of companies engaged in the research, development, manufacture, sale, or distribution of pharmaceuticals and drugs of all types. The ETF was one of the top performing levered ETFs returning ~17% last week. The pharma sector gained by ~2.8% in the last five days driven by indications of a 2024 rate cut which is good for growth stocks.

10. 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 on lower Treasury yields and rate cut bets.

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