Best Inverse/Leveraged ETFs of Last Week

Wall Street was moderate last week. The S&P 500 (up 0.4%), the Dow Jones (down 0.13%), the Nasdaq (up 2.2%) and the Russell 2000 (up 1.94%) delivered a mixed performance last week. Some segments staged a rebound like technology, clean energy and small-caps.

As the Fed indicated to go slow on future rate hikes, surge in treasury yields got moderated. This has benefitted growth stocks like technology. The small-cap index is now at its cheapest versus the large- cap Russell 1000 since March 2020, according to Jefferies data, giving every reason for bargain-hunting, as quoted on Reuters. Things are taking a turn for the better for the pint-sized stocks as these have less domestic exposure and outperform in a rising greenback environment (read: Small-Cap ETFs: Value Play or Value Trap?).

Clean energy stocks surged lately after Senate Majority Leader Chuck Schumer and Senator Joe Manchin struck an agreement on the Inflation Reduction Act of 2022. This bill aims to boost domestic energy production and reduce carbon emissions (read: Clean Energy Stocks & ETFs Surge on Climate Spending Deal).

Oil prices have dropped sharply from their recent peaks. Against this backdrop, below we highlight the winning invest/leveraged ETFs of last week.

Direxion Daily S&P Biotech Bull 3x Shares LABU – Up 44.3%

The underlying S&P Biotechnology Select Industry Index is designed to measure the performance of a sub-industry or group of sub-industries determined based on the Global Industry Classification Standards (GICS). The fund charges 96 bps in fees.

AXS 2X Innovation ETF TARK – Up 22.5%

This ETF is active and does not track a benchmark. The ARK Innovation ETF is an actively managed exchange traded fund that seeks long-term growth of capital by investing under normal circumstances primarily in domestic and foreign equity securities of companies that are relevant to the investment theme of disruptive innovation similar to ARK Innovation ETF.

MicroSectors Oil & Gas E&P 3x Inverse Leveraged ETNs OILD – Up 21.6%

The underlying MicroSectors Oil & Gas Exploration & Production Index is a total return index that tracks the stock prices of large-capitalization companies that are domiciled and listed in the U.S. and that are active in the exploration and production of oil and gas. The fund charges 95 bps in fees.

MicroSectors Travel 3x Leveraged ETN FLYU – Up 19.9%

The underlying MerQube MicroSectors U.S. Travel 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. The fund charges 95 bps in fees.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.