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Best-Performing Leveraged ETFs of Last Week

·4 min read

Wall Street was upbeat last week with the S&P 500, the Dow Jones, the Nasdaq and the Russell 2000 adding 3.7%, 2.7%, 4.1% and 4.0%, respectively. Among the key events, the unveiling of Apple’s the iPhone 14 series smartphones with four new models — iPhone 14, iPhone 14 Plus, iPhone 14 Pro and iPhone 14 Pro Max, as well as products like Apple Watch Series 8, Apple Watch Ultra and next-gen AirPods Pro was an eyecatcher.

The European Central Bank raised interest rates by an unprecedented 75 basis points on Thursday in an attempt to tame soaring inflation. The ECB raised its deposit rate to 0.75% from zero and lifted the main refinancing rate to 1.25%, their highest level since 2011, as inflation is at risk of rising further.

Solar stocks and ETFs gained massively last week, as evident from an 8.5% jump inInvesco Solar ETF (TAN). Global energy crisis amid the Russia-Ukraine war and U.S. President Joe Biden’s “Inflation Reduction Act” have led to the rise in solar energy prices.

U.S. President Joe Biden has signed a $740 billion climate change, healthcare and tax “Inflation Reduction Act.” “The Inflation Reduction Act has given the solar industry the most long-term certainty it has ever had,” Michelle Davis, principal analyst at Wood Mackenzie, said in a statement, as quoted on CNBC (read: 3 Reasons to Buy Solar ETFs Now).

A new report from the Solar Energy Industries Association and Wood Mackenzie predicts massive growth in solar installations thanks to long-term surety provided by the Inflation Reduction Act, the CNBC article noted.

There was also important news on the oil patch. Oil prices increased considerably on Sep 5 as OPEC+ producers agreed on a small oil output cut. The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, decided to cut production targets by about 100,000 barrels per day from October. Energy analysts had mostly expected the group to stick with its production policy (read: Oil ETFs Up on Surprise OPEC+ Output Cut).

The global crypto market capitalization soared by 1.65% to $1.04 trillion, and the total crypto market volume increased by 7.7% to $93.3 billion in the last 24 hours (as of Sep 10, 2021), according to Coinmarketcap.com. Talks of rate cuts in 2023 and scheduled upgrade of ether (ETH), the native token of Ethereum's blockchain boosted the crypto space last week.

Against this backdrop, we highlight a few inverse/leveraged ETFs that topped last week.

ETFs in Focus

Graniteshares 1.5X Long Coinbase Daily ETF CONL – Up 36%

The GraniteShares 1.5x Long COIN Daily ETF seeks daily investment results, before fees and expenses, of 1.5 times the daily percentage change of the common stock of Coinbase Global Inc. The expense ratio of the fund is 1.15%.

Ultrashort Bloomberg Natural Gas ETF KOLD – Up 26.6%

The ProShares UltraShort Bloomberg Natural Gas seeks daily investment results, before fees and expenses, that correspond to two times the inverse (-2X) of the daily performance of the Bloomberg Natural Gas Subindex. The index is intended to reflect the natural gas segment of the commodities market. The index consists of futures contracts on natural gas. The fund charges 95 bps in fees.

Microsectors Gold Miners 3X ETN GDXU – Up 26.6%

The MicroSectors Gold Miners 3X Leveraged ETNs is linked to a three-times leveraged participation in the performance of the S-Network MicroSectors Gold Miners Index. The index seeks to provide exposure to the performance of the VanEck Vectors Gold Miners ETF and the VanEck Vectors Junior Gold Miners ETF.

Bank of Montreal Microsectors Travel 3X Leverage FLYU – Up 24.8%

The MicroSectors Travel 3x Leveraged ETN is linked to three-times leveraged participation in the performance of the MerQube MicroSectors U.S. Travel Index, compounded daily, minus the applicable fees. The index is a total return index that tracks the stock prices of U.S. domiciled and listed securities that are materially engaged in specified segments of the travel industry.

Etfmg Prime Junior Silver Miners 2X ETF SILX – Up 20.3%

The ETFMG Prime 2x Daily Junior Silver Miners ETF seeks daily investment results, before fees and expenses, that correspond to 200% the return of the Prime Junior Silver Miners & Explorers Index for a single day. The index provides a benchmark for investors interested in tracking public, small-cap companies that are active in the silver mining exploration and production industry.


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ProShares UltraShort Bloomberg Natural Gas (KOLD): ETF Research Reports
 
MicroSectors Gold Miners 3X Leveraged ETNs (GDXU): ETF Research Reports
 
ETFMG Prime 2x Daily Junior Silver Miners ETF (SILX): ETF Research Reports
 
MicroSectors Travel 3X Leveraged ETNs (FLYU): ETF Research Reports
 
GraniteShares 1.5x Long COIN Daily ETF (CONL): ETF Research Reports
 
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