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Wall Street was subdued last week. A slew of earnings results for the second quarter and a new report on consumer spending for June came in stronger than expected. While such data points triggered rising rate concerns, increasing cases of the delta variant of COVID-19 also weighed on risk-on sentiments. The S&P 500, the Dow Jones and the Nasdaq Composite lost about 1%, 0.5% and 1.9%, respectively, last week.
Against this backdrop, below we highlight a few leveraged ETF areas that won last week.
Inverse Energy
Oil prices declined slightly after major global oil producers clinched a deal on supply. The deal entails the supply of more crude to a tight oil market amid less soaring prices. United States Oil Fund LP (USO - Free Report) lost 2.3% last week as Reuters reported that Saudi Arabia and the United Arab Emirates had agreed to a deal, per a Reuters article.
Microsectors -3X U.S. Big Oil Index ETN (NRGD - Free Report) (up 31.5%) and S&P Oil & Gas Exploration Bear 3X Direxion (DRIP) (up 28.4%) were the two best-performing ETFs of last week.
Inverse High-Beta
As markets were slightly subdued last week, high-beta stocks declined reasonably. S&P 500 High Beta Bear 3X Direxion (HIBS - Free Report) gained 19% last week.
Inverse Biotech
Recently, Johnson & Johnson’s (JNJ - Free Report) vaccine was said to show side effects. Thus, companies such as Novavax Inc (NVAX - Free Report) that are moving forward to gaining authorization for its COVID-19 vaccine could see some setbacks. S&P Biotech Bear 3X Direxion (LABD) gained about 18.8% last week.
Inverse Small-Cap
Apprehensions that the U.S. economic revival will slow down in the second half of 2021 are weighing on small-cap stocks. These stocks were the beneficiaries of the reflation trade a few days back. Some analysts now believe that the bull run in small-cap stocks is nearing an end as renewed virus fear may instigate a rally in tech and growth stocks. Smallcap Bear 3X Direxion (TZA) and Ultrapro Short Russell2000 ETF (SRTY - Free Report) gained 16.2% and 16.1% last week, respectively.
Inverse Semiconductor
Supply chain constraints have probably weighed on the semiconductor stocks. Semiconductor Bear 3X Direxion (SOXS - Free Report) added 12.6% last week.
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5 Best Inverse/Leveraged ETF Areas of Last Week
Wall Street was subdued last week. A slew of earnings results for the second quarter and a new report on consumer spending for June came in stronger than expected. While such data points triggered rising rate concerns, increasing cases of the delta variant of COVID-19 also weighed on risk-on sentiments. The S&P 500, the Dow Jones and the Nasdaq Composite lost about 1%, 0.5% and 1.9%, respectively, last week.
Against this backdrop, below we highlight a few leveraged ETF areas that won last week.
Inverse Energy
Oil prices declined slightly after major global oil producers clinched a deal on supply. The deal entails the supply of more crude to a tight oil market amid less soaring prices. United States Oil Fund LP (USO - Free Report) lost 2.3% last week as Reuters reported that Saudi Arabia and the United Arab Emirates had agreed to a deal, per a Reuters article.
The U.S. government data also showed gasoline demand declining considerably last week. While the U.S. Energy Information Administration said that crude stockpiles fell more than expected, in their eighth successive drawdown, it was outdone by falling gasoline demand (read: Optimistic About Oil ETFs? 2 Factors May Hurt the Energy Market).
Microsectors -3X U.S. Big Oil Index ETN (NRGD - Free Report) (up 31.5%) and S&P Oil & Gas Exploration Bear 3X Direxion (DRIP) (up 28.4%) were the two best-performing ETFs of last week.
Inverse High-Beta
As markets were slightly subdued last week, high-beta stocks declined reasonably. S&P 500 High Beta Bear 3X Direxion (HIBS - Free Report) gained 19% last week.
Inverse Biotech
Recently, Johnson & Johnson’s (JNJ - Free Report) vaccine was said to show side effects. Thus, companies such as Novavax Inc (NVAX - Free Report) that are moving forward to gaining authorization for its COVID-19 vaccine could see some setbacks. S&P Biotech Bear 3X Direxion (LABD) gained about 18.8% last week.
Inverse Small-Cap
Apprehensions that the U.S. economic revival will slow down in the second half of 2021 are weighing on small-cap stocks. These stocks were the beneficiaries of the reflation trade a few days back. Some analysts now believe that the bull run in small-cap stocks is nearing an end as renewed virus fear may instigate a rally in tech and growth stocks. Smallcap Bear 3X Direxion (TZA) and Ultrapro Short Russell2000 ETF (SRTY - Free Report) gained 16.2% and 16.1% last week, respectively.
Inverse Semiconductor
Supply chain constraints have probably weighed on the semiconductor stocks. Semiconductor Bear 3X Direxion (SOXS - Free Report) added 12.6% last week.