Top Performing Leveraged/Inverse ETFs: 09/11/2022

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 HIBL ETF provides 3x daily leveraged exposure to a beta-weighted index of 100 highest-beta stocks in the S&P 500. All S&P 500 sectors rose last week, with materials, finance, and healthcare each gaining by over 5%. Consumer discretionary returned close to 7%. The index gained ahead of the much-anticipated inflation report.

2. KOLD – ProShares UltraShort Bloomberg Natural Gas

KOLD, which offers 2x daily inverse leveraged exposure to natural gas, was present on the top-performing levered/ inverse ETFs list this week. Natural gas prices declined amid US recession fears and worries about China’s economy.

3. WEBL – Direxion Daily Dow Jones Internet Bull 3X Shares

WEBL, providing 3x leveraged daily exposure to an index of the largest U.S. internet companies was present on the list with ~18% returns in the last week as investors get used to the upcoming interest rate hike concerns.

4. WANT – Direxion Daily Consumer Discretionary Bull 3X Shares

Consumer discretionary WANT ETF that provides 3x leveraged exposure to the U.S. consumer discretionary sector featured on the list of top-performing levered funds last week ahead of the upcoming CPI data and the possibility of a favorable inflation number. The consumer discretionary sector gained over 7% and was the best-performing sector in the last week.

5. 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% in the last week as gold rose on a weaker dollar ahead of US inflation report.

6. SKYU – ProShares Ultra Nasdaq Cloud Computing ETF

ProShares Ultra Nasdaq Cloud Computing seeks daily investment results, corresponding to 2x the daily performance of the ISE CTA Cloud Computing Index, was another technology-focused ETF on the list of top-performing ETFs last week, with ~15% weekly returns as investors price in the expectation of Fed’s future rate hikes.

7. CLDL – Direxion Daily Cloud Computing Bull 2X Shares

Direxion Daily Cloud Computing Bull 2X Shares that seek daily investment results, of 200% of the performance of the Indxx USA Cloud Computing Index also featured on the list with ~15% weekly gains.

8. RETL – Direxion Daily Retail Bull 3X Shares

RETL that offers 2x daily long leverage to the Russell 1000 RGS Retail Index featured on the list with weekly returns of ~20%. Internet, multiline, and specialty retail segments gained ~7%, ~4.5%, and ~4%, respectively over the last five days. Stocks gained in anticipation of upcoming CPI report and a favorable inflation headline this week.

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

The PILL ETF tracks the performance of companies that are 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 ~15% this week. The pharma sector gained by ~3.5% in the last five days.

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

The biotech fund, LABU gained more than 14% and the biotech sector increased by 4% in the last five days. Biotech stocks got a boost from President Biden’s initiatives to strengthen the biotech production and supply chain as well as lower drug prices.

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