Top Performing Leveraged/Inverse ETFs: 08/28/2022

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.

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, returned ~22% last week, and made it to the list, as markets reacted positively to Chinese economic incentives.

2. BERZ – MicroSectors Solactive FANG & Innovation -3X Inverse Leveraged ETN

The BERZ ETF, which provides daily -3x inverse exposure to an index of FANG and technology companies, was present on the top performing inverse ETFs list with ~18% weekly returns. Technology stocks toppled by more than 4% over the expectation of another Fed interest rate hike and prominent recession fears.

3. TECS – Direxion Daily Technology Bear 3X Shares

Another inverse technology ETF, TECS made it to the list gaining more than 17% last week. The technology sector fell as investors shun technology stocks in a rising rate and surging yield scenario. Technology stocks are sensitive to rising interest rates and are expected to fall in a rising rate environment.

4. YINN – Direxion Daily FTSE China Bull 3X Shares

YINN seeks daily investment results of 300% of the performance of the FTSE China 50 Index. It provides leveraged exposure to the Chinese large-cap sector and was one of the top levered ETFs last week supported by the economic stimulus to support growth and reduce the effects of the pandemic-induced lockdowns in the country.

5. UVIX – 2x Long VIX Futures ETF

UVIX which offers daily 2x leveraged exposure to short-term VIX futures was one of the top performing levered ETFs as VIX the CBOE volatility index gained to ~26 from 23.9 in the last week. Market volatility increased on rising oil prices and as concerns about rate hikes lingered during the week.

6. SQQQ – ProShares UltraPro Short QQQ

SQQQ ETF offers 3x daily short leverage to the NASDAQ-100 Index, which is heavily weighted on the technology and consumer sectors, made it to the list as both sectors posted declines of ~4% and ~3% respectively in the last week on the back of rising interest rates and inflation.

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

NRGU which tracks three times the performance of an index of US Oil & Gas companies topped the weekly list of top performing levered/ inverse ETFs returning ~13%. Energy was the best performing sector gaining 6%+ in the last five days. Oil gained on potential supply cut by OPEC+.

8. SOXS – Direxion Daily Semiconductor Bear 3x Shares

The SOXS ETF that inversely tracks the performance of the PHLX Semiconductor Index featured on the list of levered/ inverse ETFs. The semiconductor sector continues to face challenges from rising interest rates. The sector reported a decline of ~4% in the last week.

9. SDOW – ProShares UltraPro Short Dow30

SDOW ETF which offers 3x daily short leverage to the Dow Jones Industrial Average was one of the top performing ETFs as the industrial sector posted a decline of ~2% in the last five days.

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