Top Performing Leveraged/Inverse ETFs: 11/05/2023

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 NAIL ETF that focuses on the US housing segment topped the list of top performing levered ETFs, returning more than 43%, supported by strong job gains data in the U.S. construction industry. Real estate was the top performing sector, with 6.6% weekly gains as demand continued to outpace supply.

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

DPST, which provides 3x leveraged exposure to an index of US regional banking stocks, featured on the list of top-performing levered ETFs as the Financials sector gained by over 5%. Stocks gained from an overall positive rally after data showed signs of cooling inflation and dovish Fed comments. Commercial banking segment gained by more than 7% in the last five days.

3. TARK – AXS 2X Innovation ETF

TARK is an actively-managed fund-of-fund that seeks to achieve 2x the return, for a single day, of the ARK Innovation ETF (ARKK) and was one of the best-performing levered ETFs with over 38% weekly gains as growth and beta stocks moved higher on dovish Fed comments, investor confidence, and expectations of a possible rate hike pause.

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

The biotech fund, LABU, gained more than 36% as biotech stocks got a boost from falling Treasury yields and the possibility of a rate hike pause, and was one of the candidates on the top performing levered ETFs list last week.

5. BNKU – MicroSectors U.S. Big Banks Index 3X Leveraged ETNs

Another banking fund, BNKU, which tracks 3x the performance of an equal-weighted index of US large banks, ranked among the leveraged ETFs’ list as the commercial banking segment returned more than 7% in the last week.

6. CONL – GraniteShares 1.5x Long Coinbase Daily ETF

CONL, which provides 1.5x leveraged exposure to the daily price movement for shares of Coinbase stock, featured on the list of top performing levered ETFs with ~32.5% weekly gains as investors expect a green signal for Spot Bitcoin ETFs approval, which should increase demand. Shares of crypto and other growth stocks also gained after the Fed did not hike interest rates in its latest meeting and market expectation of steady rates for this year.

7. FLYU – MicroSectors Travel 3x Leveraged ETN

FLYU tracks 3x of the daily price movements of an index of US-listed travel-related companies and made it to the list with more than 28% weekly gains.

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

The MEXX ETF made it on the list with ~28% returns in the last week. The ETF benefited from a weaker dollar this week and higher metals prices, as well as hopes that the U.S. Fed was done with monetary tightening.

9. KORU – Direxion MSCI Daily South Korea Bull 3X Shares

KORU provides 300% daily leveraged exposure to an index of large- and mid-cap South Korean companies, featured on the list of top performing leveraged ETFs last week, supported by a weaker dollar this week as well as Fed’s decision to leave the interest rates unchanged.

10. CARU – MAX Auto Industry 3X Leveraged ETN

CARU is an ETN that tracks 3x of the daily price movements of an index consisting of auto industry companies listed in the U.S., was one of the candidates on the list with ~28% returns in the last week, as the U.S. October new-vehicle sales showed encouraging numbers and improving inventory.

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