Top Performing Leveraged/Inverse ETFs: 02/20/2022

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.

1. BOIL – ProShares Ultra Bloomberg Natural Gas

BOIL, the natural gas ETF was the top performing levered ETF gaining ~19% this week. Natural gas prices have gained on the back of cooler than normal weather conditions and rising tensions between Russia and Ukraine.

2. 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 ~18% in the last week as investors seek a safe haven against increasing volatility and inflationary trends as well as increasing geopolitical tensions between Russia and Ukraine.

3. CLDS – Direxion Daily Cloud Computing Bear 2X Shares

Direxion Daily Cloud Computing Bear 2X Shares which tracks the performance of the Indxx USA Cloud Computing Index, inversely, was present on this week’s top performing inverse ETFs list. This ETF benefitted as the overall COVID-19 scenario has improved and chances of nationwide lockdowns now seem a distant reality.

4. NRGD – MicroSectors U.S. Big Oil Index -3X Inverse Leveraged ETN

NRGD ETF, which provides inverse exposure to the performance of U.S. Oil, Gas & Consumable Fuels was one of the top performing levered/ inverse ETFs, gaining over 12% last week as the overall energy sector lost 3% in the last week.

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

Another gold ETF, NUGT that seeks daily investment results of 200% of the performance of the NYSE Arca Gold Miners Index, ranked among the top levered ETFs this week. The ETF gained more than 12% in the last week.

6. BNKD – MicroSectors U.S. Big Banks Index -3X Inverse Leveraged ETNs

BNKD tracks three times the inverse performance of an equal-weighted index of US large banks. Banking stocks have come under pressure, despite the fact that the Fed could raise rates between three and four times in 2022 as investors prepare for uncertainties of a negative impact on the economy. Also, benchmark rates declined last week.

7. OILD – MicroSectors Oil & Gas Exp. & Prod. -3x Inverse Leveraged ETN

Another oil & gas ETF that made it to the list this week was OILD ETF which provides exposure to the inverse performance of U.S. Oil, Gas & Consumable Fuels.

8. DRIP – Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 2X Shares

This week’s top performing levered/ inverse ETFs list also included Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 2X Shares as the energy sector fell by ~3% in the last week.

9. LABD – Direxion Daily S&P Biotech Bear 3x Shares

The biotech fund, LABD which offers inverse exposure to the US Biotechnology sector gained by nearly 10% last week. The biotech sector suffered a fall amid rising rates prospects and as investors continued to dump risky assets.

10. WEBS – Direxion Daily Dow Jones Internet Bear 3X Shares

The WEBS ETF that tracks companies having a strong internet focus was present on the top performing levered/ inverse ETFs list this week. ETFs focusing on cloud computing and the internet segment that gained during the lockdown period are now registering a fall as things have started to normalize and there are no chances for future lockdowns.

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