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7 Top Leveraged ETFs of Last Week

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Last week was moderately upbeat for Wall Street with SPDR S&P 500 ETF Trust (SPY - Free Report) (up 2.2%), SPDR Dow Jones Industrial Average ETF Trust (DIA - Free Report) (up 2.2%) and Invesco QQQ Trust (QQQ - Free Report) (up 0.3%) returning decently and the small-cap ETF iShares Russell 2000 Index ETF (IWM - Free Report) (up 5.1%) surging.

Vaccine hopes bolstered by Moderna’s (MRNA) successful early-stage clinical trials drove risk-on trade sentiments last week and boosted stocks and sectors that are the direct beneficiaries of economic reopening. This is the reason small-cap stocks outperformed last week (read: Vaccine Hopes Boost These Sectors & ETFs).

Meanwhile, J.P. Morgan (JPM) and Goldman Sachs (GS) have come up with upbeat earnings results, giving investors another reason to rejoice. Apple has also gained as it won the EU court case over $15 billion in claimed taxes (read: Warren Buffett Bets Big on Apple: Buy These ETFs).

However, big tech stocks put up a subdued performance and weighed on the tech-heavy Nasdaq index. Technology stocks and ETFs have been the star performers this year due to the pandemic. Social distancing norms to mitigate the spread of the virus compelled people to stay at home, binge on online shopping and work as well as learn from home.

However, after such a steep rally amid the pandemic, big tech stocks are now deemed overvalued by some investors. Moreover, stocks related to the reopening of the economy gained attention last week. Against this backdrop, below we highlight a few leveraged ETFs that were last week’s outperformers.

Investors should note that the winners are from the cyclical industries like industrials and transportation (that are the biggest beneficiaries from the successful rebooting of the U.S. economy), healthcare (as this area stands to gain from vaccine development and rollouts of treatment), rate-sensitive sectors like homebuilders, mortgage-REITs and utilities (as interest rates remain at a record low level) (read: Is 60/40 Rule Obsolete Now? 5 High-Yielding ETFs to Play).

Another winning industry – cannabis – deserves a special mention. Aphria Inc. (APHA) added about 9% past week. Notably, Stifel analyst W. Andrew Carter, rated Aphria “Buy” recently on a strong balance sheet and cash flows, as quoted on Barrons.com (read: Are Marijuana Stocks & ETFs Coronavirus-Proof?).

Direxion Daily Transportation Bull 3X Shares (TPOR - Free Report) – Up 19.7%

Direxion Homebuilders & Supplies Bull 3X ETF (NAIL - Free Report) – Up 19.0%

Direxion Industrials Bull 3X ETF (DUSL - Free Report) – Up 18.2%

Direxion Daily Healthcare Bull 3X Shares (CURE - Free Report) – Up 15.9%

Credit Suisse X-Links Monthly Pay 2xLeveraged Mortgage REIT ETN (REML - Free Report) – Up 14.6%

Direxion Daily Utilities Bull 3X ETF (UTSL - Free Report) – Up 13.1%

MicroSectors Cannabis 2x Leveraged ETN (MJO - Free Report) – Up 11.6%

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