Wall Street was moderate last week. Key U.S. equity gauges like the S&P 500 (up 1.7%), the Dow Jones (down 0.2%) and the Nasdaq Composite (up 3.7%) gave mixed performances. Upbeat technology earnings releases, extremely downbeat U.S. GDP data for the second quarter, rise in virus cases and vaccine hopes were the key factors that pulled the strings of the markets last week.
Against this backdrop, below we highlight a few winning leveraged ETFs.
Direxion Daily Technology Bull 3X ETF (TECL - Free Report) – Up 15.3%
The fund comprises stocks from industries such as computers & peripherals; software; diversified telecommunications services; communications equipment; semiconductors & semiconductor equipment; and Internet software & services. Technology has been a winning sector amid the coronavirus outbreak as social distancing norms enacted globally to mitigate the spread of the virus compelled people go online for almost every need.
Direxion Daily Semiconductor Bull 3X ETF (SOXL - Free Report) – Up 14.1%
The underlying PHLX Semiconductor Sector Index measures the performance of the semiconductor sub-sector of the U.S. equity market. The bitcoin rally (mining of cryptocurrencies needs the usage of semiconductors) and the tech sector’s uninterrupted momentum is a boon for the space (read: 3 Reasons Behind the Recent Bounce in Bitcoin: ETFs in Focus).
Direxion Daily Dow Jones Internet Bull 3X Shares (WEBL - Free Report) – Up 13.1%
The underlying Dow Jones Internet Composite Index includes only companies whose primary focus is Internet related. Work-and-learn from home, online shopping, digital payments and a surge in video gaming are all contributing to the rally in Internet stocks. Though some parts of the global economy have reopened, the second wave of coronavirus has kept demand for Internet stocks intact (read: ETFs Riding the Hot Remote Working Trend).
ProShares Ultra Silver (AGQ - Free Report) – Up 12.4%
The last few days were all about a silver surge. Prices climbed to the highest level in nearly four years. Increase in investment demand, pick-up in industrial activity due to factory reopening after lockdowns, and investors’ appetite for alternatives to the safe-haven asset gold (which is pretty pricey at the current level) led to the rally.
About 50% of the metal’s total demand comes from industrial applications. So, the reopening of global economies is helping silver more than the yellow metal (read: Here's Why Silver Outshining Gold ETFs).
Growth in the global solar PV industry, a likely rebound in global computer shipments, as well as new sources of demand for sensors used in IoT are providing a boost to silver demand. A raft of global stimulus, including the latest EU deal of borrowing 750 billion euros, aided the rally.
Direxion Daily Real Estate Bull (DRN - Free Report) ) – Up 12.3%
This sector could be winners of the low benchmark Treasury yield and signs of an economic recovery. If the economy recovers, tenants’ ability to pay rents on time and regularly would go up. And low yield is beneficial for this rate-sensitive sector.
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