Top Performing Leveraged/Inverse ETFs: 07/28/2024

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

DPST, a leveraged ETF that triples the daily returns of a US regional bank index topped the list of leveraged ETFs last week, as major US banks reported strong second-quarter earnings. The prospect of a Federal Reserve interest rate cut in September could further boost the ETF by steepening the yield curve, which benefits regional banks.

2. DFEN – Direxion Daily Aerospace & Defense Bull 3X Shares

This ETF aims to triple the daily return of an index of defense industry stocks and was one of the top-performing levered ETFs last week as defense stocks gained on the back of a potential Donald Trump presidency and rising global geopolitical tensions. The aerospace & defense sector gained more than 4.5% in the last five days.

3. ETHD – ProShares UltraShort Ether ETF

ETHD which tracks -2x the daily price movements of an index that measures the price of Ethereum ETF was one of the ETFs on the list with over 13% weekly gains, amid a sell-off following the broader market downturn.

4. FLYD – MicroSectors Travel -3x Inverse Leveraged ETN

FLYD which tracks -3x the daily price movements of an index of US-listed travel-related companies made it to the weekly list of inverse ETFs with ~13% returns. Travel stocks fell amid a slowdown in air travel demand.

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

The biotech fund, LABU gained ~12.6% and featured on the top performing levered ETFs’ 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.

6. TSLQ – AXS TSLA Bear Daily ETF

TSLQ provides inverse exposure to the daily price movement for shares of Tesla stock, ranked among the inverse ETFs with nearly ~12% weekly returns amid big tech sell-off. Tesla’s stock price plummeted after the company reported disappointing earnings, including a 7% decline in automotive revenue compared to the previous year.

7. 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 ~12% last week driven by indications of a September rate cut which is good for growth stocks.

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

The NAIL ETF focusing on the US housing segment was one of the contenders on the list of top performing levered ETFs returning over 11% amid expectations of the Fed lowering rates as soon as September which should bring down the mortgage rates. The real estate sector was up ~0.18% last week.

9. KOLD – ProShares UltraShort Bloomberg Natural Gas

KOLD, which offers 2x daily inverse leveraged exposure to natural gas, was one of the contenders on the list of top performing levered/ inverse ETFs returning ~10% last week, as natural gas prices struggled due to high storage levels.

10. 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 made it to the top levered ETFs’ list with ~10% weekly gains as anticipation of potential Federal Reserve interest rate cuts has fueled investor interest in small-cap stocks.

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