Top Performing Leveraged/Inverse ETFs: 12/17/2023

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.

SOXL, which offers 3x daily long leverage to the PHLX Semiconductor Index, topped the list of the top performing levered/ inverse ETFs last week. The overall semiconductor segment increased by ~6.5% after the Fed kept interest rates unchanged in its latest December meeting and on expectations of multiple rate cuts in 2024.

2. 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. The ETN got a boost with nearly 28% weekly returns on constant rates and interest rate cuts likely in the next year.

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

The biotech fund, LABU, gained ~25% 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 dovish Fed comments.

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

BNKU, which tracks 3x the performance of an equal-weighted index of US large banks, featured on the list of top-performing levered ETFs as the Financials sector gained by over 3%. Stocks gained from an overall positive rally from dovish Fed comments and easing inflation data. The commercial banking segment gained by ~6% in the last five days.

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

Another banking ETF, DPST, which provides 3x leveraged exposure to an index of US regional banking stocks, also ranked among the leveraged ETFs’ list as the commercial banking segment returned around 6% in the last week.

6. NAIL – Direxion Daily Homebuilders & Supplies Bull 3X Shares

The NAIL ETF that focuses on the US housing segment was one of the candidates on the list of top performing levered ETFs, returning nearly 24% on expectations of declining mortgage rates as the Fed signaled cutting interest rates several times in the next year. The real estate sector was the best-performing sector, returning 4.5% in the last week.

7. HIBL – Direxion Daily S&P 500 High Beta Bull 3X Shares

The HIBL ETF provides 3x daily leveraged exposure to a beta-weighted index of 100 highest-beta stocks in the S&P 500. S&P 500 index gained, driven by the early holiday cheer given by the Federal Reserve.

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

The MEXX ETF made it on the list with over ~17% returns in the last week. The ETF benefited from a falling USD and faster economic growth expected in 2024. Mexico’s key rate stayed steady at 11.25% for the sixth meeting, but a cut might come in early 2024.

9. RETL – Direxion Daily Retail Bull 3X Shares

RETL offers 2x daily long leverage to the Russell 1000 RGS Retail Index featured on the list with weekly returns of ~17%. Both specialty and multiline retail segments gained ~4% and ~5.5%, respectively, over the last five days. The country also witnessed stronger-than-expected retail sales.

10. USD – ProShares Ultra Semiconductors

USD, which provides leveraged exposure to the U.S. semiconductor stocks, also featured on this week’s list with over 16.8% weekly gains.

For more news, information, and analysis, visit the Leveraged & Inverse Channel.