The past few weeks have seen the emergence of several leveraged and inverse ETFs, offering investors the opportunity to earn significant returns. However, it is crucial to note that these types of funds can experience rapid movements, so conducting thorough research is essential for investors.
The ETF Direxion Daily TSLA Bull 1.5X Shares (TSLL) took the top spot, providing investors with 1.5 times leveraged exposure to the daily movement of Tesla’s stock price. TSLL recorded impressive returns of approximately 15.5% last week. This increase in performance can be attributed to Morgan Stanley’s upgrades, driven by notable advancements in Tesla’s autonomous software.
Another standout is the ETN MicroSectors Gold Miners 3X Leveraged (GDXU), an equity fund that offers three times exposure to an index comprising two of the largest gold miners ETFs. GDXU achieved a return of 14.6% thanks to positive economic trends in China and anticipation surrounding the Federal Reserve’s interest rate decision.
The ETF GraniteShares 1.25x Long Tesla Daily (TSL) also made the list, providing investors with 1.25 times leveraged exposure to the daily movement of Tesla’s stock price. TSL generated returns of approximately 13% the previous week.
The ETF AdvisorShares MSOS 2x Daily (MSOX) also appeared on the list, aiming to achieve double the total daily performance of the AdvisorShares Pure US Cannabis ETF (MSOS) through swap agreements. MSOX delivered weekly returns of around 13%, driven by a Senate hearing report indicating the possibility of cannabis reform later this month.
The leveraged ETF ProShares Ultra MSCI Brazil Capped (UBR), which offers daily two times leverage to the MSCI Brazil Index, emerged as another high-performance option. UBR gained weekly profits of over 11%, driven by solid data from the services sector.
Other leveraged ETFs that recorded notable returns include the Direxion Daily MSCI Brazil Bull 2X Shares (BRZU), the Direxion Daily Junior Gold Miners Index Bull 2x Shares (JNUG), the Direxion Daily Gold Miners Index Bull 2x Shares (NUGT), the ETN MicroSectors Auto Industry 3X Leveraged (CARU), and the Direxion Daily Electric and Autonomous Vehicles Bull 2X Shares (EVAV).
It is important for investors to stay informed about leveraged and inverse ETFs through reliable sources. For more news, information, and analysis on this topic, visit the Leveraged & Inverse Channel.
Definitions:
– Leveraged ETF: An exchange-traded fund that uses financial derivatives, such as options and futures contracts, to amplify the returns of an underlying index.
– Inverse ETF: An exchange-traded fund that uses different financial instruments to provide the opposite performance of an underlying index.
– ETF: An exchange-traded fund is a type of investment fund traded on stock exchanges, similar to stocks.
Sources:
– Leveraged & Inverse Channel