Top Performing Leveraged/Inverse ETFs: 10/23/2022

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.

KOLD, which offers 2x daily inverse leveraged exposure to natural gas, was present on the top-performing levered/ inverse ETFs list last week. Natural gas prices declined due to lower weather-driven demand and record production levels.

2. ONG – Direxion Daily Oil Services Bull 2X Shares

ONG seeks daily investment results of 200% of the performance of the MVIS US Listed Oil Services 25 Index and was one of the top-performing levered ETFs with ~33% weekly gains on the back of improving investor sentiment on easing Chinese quarantine policies for inbound travelers and OPEC+ output cut.

3. MSOX – AdvisorShares MSOS 2x Daily ETF

MSOX seeks to achieve 2x the total daily return of the AdvisorShares Pure US Cannabis ETF (MSOS) through swap agreements featured on the list with ~32% returns with rising legalization support by the US President. Recently Green Thumb Industries, one of the largest cannabis companies in the U.S., also inked a deal with one of the largest global convenience store chains, Circle K, to open medical marijuana dispensaries adjacent to store locations in Florida.

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

This ETF that aims to triple the daily return of an index of defense industry stocks was one of the top-performing levered ETFs last week as defense stocks gained on the back of rising global geopolitical tensions. The overall aerospace & defense sector gained by more than 8% in the last five days.

5. FLYU – MicroSectors Travel 3x Leveraged ETN

FLYU tracks 3x the daily price movements of an index of US-listed travel-related companies and made it to the list on expected robust travel demand after two years of travel bans and restrictions.

6. 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, also featured on the weekly list returning ~25%. The energy sector gained ~7% and was the best-performing sector in the last five days. Oil price gains were supported by a potential OPEC+ output cut.

7. UBR – ProShares Ultra MSCI Brazil Capped

UBR, which offers 2x daily long leverage to the MSCI Brazil Index, was one of the top-performing levered ETFs as the country witnessed improved commodity prices as well as strong corporate data. There are chances of continuation of the existing policies as a result of the Brazilian elections.

8. BULZ – MicroSectors Solactive FANG & Innovation 3X Leveraged ETN

The BULZ ETF was one of the best-performing levered ETFs with over ~24% returns. The ETF focuses on top technology companies domiciled in the U.S. The technology sector gained by more than 4% in the last week ahead of Big Tech earnings reports.

9. BRZU – Direxion Daily MSCI Brazil Bull 2X Shares

BRZU, which provides 2x daily leveraged exposure to an index of large and mid-cap Brazilian companies also made it to the list.

10. SOXL – Direxion Daily Semiconductor Bull 3x Shares

SOXL, which offers 3x daily long leverage to the PHLX Semiconductor Index was a contender on the top performing levered/ inverse ETFs list last week. The overall semiconductor segment increased by almost 6% in the last five days driven by an expected slower pace of interest rate hikes.

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