Top Performing Leveraged/Inverse ETFs: 12/03/2023

1. 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 27% last week and topped the list of levered ETFs, as gold prices rose due to expectations that the Federal Reserve could begin cutting rates in 2024.

2. 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, ranked second on the list of top performing levered ETFs with ~24% weekly increases as COIN gains from Bitcoin and Ether recovery.

3. 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 2%. Stocks gained from an overall positive rally after data showed signs of economic softening and dovish Fed comments. The Commercial banking segment gained by ~5% in the last five days.

4. JNUG – Direxion Daily Junior Gold Miners Index Bull 2x Shares

JNUG seeks daily investment results of 200% of the performance of the MVIS Global Junior Gold Miners Index. The index tracks the performance of foreign and domestic companies engaging in gold and silver mining. JNUG was another precious metals candidate on the top-performing levered/ inverse ETFs list returning over 19% last week.

5. YANG – Direxion Daily FTSE China Bear 3X Shares

YANG, which offers 3x daily short leverage to the FTSE China 50 Index, was the top performing levered/ inverse ETF returning more than 18% last week on falling property stocks and industrial profits.

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

The biotech fund, LABU gained more than 17% as biotech stocks got a boost from falling Treasury yields, and was one of the candidates on the top performing levered ETFs list last week. Yields dropped amid rising bets on interest rate cuts next year.

7. KOLD – ProShares UltraShort Bloomberg Natural Gas

KOLD, which offers 2x daily inverse leveraged exposure to natural gas, was one of the candidates on the list of top performing levered/ inverse ETFs returning ~17% last week, as natural gas prices fell amid weak heating demand outlook and robust production data.

8. NUGT – Direxion Daily Gold Miners Index Bull 2x Shares

Another gold ETF, NUGT seeks daily investment results of 200% of the performance of the NYSE Arca Gold Miners Index, ranked among the top levered ETFs. The ETF gained nearly 17% in the last week.

9. 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 around 5% in the last week.

10. 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 ~16% weekly gains as growth and beta stocks moved higher on dovish Fed comments, investor confidence, and expectations of a possible rate hike pause.

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