|Bid||0.00 x 2200|
|Ask||0.00 x 3200|
|Day's Range||0.00 - 0.00|
|52 Week Range|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||169.72%|
|Beta (3Y Monthly)||4.37|
|Expense Ratio (net)||0.99%|
We have highlighted a few leveraged equity ETFs that have piled up more than 25% returns so far in the fourth quarter and could continue to be investors' darlings.
The bullish trend seems more likely this year with positive momentum built up in the space. This will result in huge demand for leveraged ETFs as investors seek to register big gains in a short span.
The U.S.-China trade deal plays a profound role in the performance of the semiconductor sector given their exposure to China. "Due to their considerable exposure to the Chinese market and a heavily intertwined supply chain in Asia, semiconductor stocks have seen collateral damage as the US-China trade spat has escalated," said a Direxion Investments "Xchange" post. "To make matters worse, semiconductors are effectively everywhere today from computers to smartphones to televisions," the post added.
In a speech before the United Nations (UN) Tuesday, President Trump reignited trade fears with some aggressive comments aimed at China. Enter the Direxion Daily Semiconductor Bull 3X Shares (NYSE: SOXL) and the Direxion Daily Semiconductor Bear 3X Shares (NYSE: SOXS), two leveraged that can thrive on the back of trade headlines to due the elevated tariff sensitivity of chip stocks.
The U.S. Commerce Department is receiving license requests for granting sales to Huawei. In such a scenario, we look at a few chip ETFs which will benefit from a nod in favor.
When it comes to traders looking leveraged exchange-traded fund (ETF) opportunities, the semiconductor sector is one in which China will have a profound impact. "It is really important to look at where China is in the overall value chain," said Jimmy Goodrich, vice-president of global policy at the Semiconductor Industry Association, a US trade group representing some of the biggest names in the industry from Intel to Broadcom. It is really important to look at where China is in the overall value chain," he added.
The technology sector once again finds itself at the center of US/China trade tensions. The PHLX Semiconductor Sector Index (XSOX) is lower by nearly 11% over the past week, including a 4.32% decline on Monday. The World Semiconductor Trade Statistics group recently forecast a 12% decline in chip sales, which only be partially offset by a 5% increase next year.
The semiconductor industry industry is in play after chipmaker AMD reported its second-quarter earnings results on Thursday. While the company was able to be on par with analyst estimates for earnings per share and beat revenue expectations, revenue was actually down 13 percent compared to the same quarter last year. For the bears, this could put the Direxion Daily Semiconductor Bear 3X ETF (SOXS) in play.
We have highlighted five leveraged/inverse products that have gained in double digits in the past month though these involve a great deal of risk when compared to traditional products.
Chip stocks are the big winners on the U.S.-China trade truce. In particular, AMD, Skyworks, Nvidia, Micron, Broadcom, are all in the green. Yahoo Finance's Jared Blikre breaks it down with Seana Smith.