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Best Leveraged ETFs of the Post-Election Day Rally

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Chances of a divided congress caused a superb rally in Wall Street the day after election.The contest for both the presidency and Senate has emerged tighter than expected. The tech-centric Nasdaq was the main winner having gained 5.8%, and outdoing the S&P (up 2.20%, which marks its best performance since June) and Dow's (up 1.3%) gains. Per a MarketWatch article, the S&P 500 and the Nasdaq recorded the best post-election day rally in history.

As vote counting started, the figures led market experts to believe that chances of a balanced government are high. In absence of any "blue wave," where Democrats rule both chambers of Congress, possibilities became rife that pulling out existing policies and getting the new ones passed would be tougher, even if Democratic candidate Biden wins.

"The belief is that the Senate stays more balanced, and that balance keeps a gridlock — which prevents big changes to health care and the tax code," said Darrell Cronk, president of Wells Fargo Investment Institute, as quoted on nbcnews.com.

The likelihood of a divided government means that too many changes on policies are less likely. The policies “will stay more moderate on the economy and taxes,” the president of Wells Fargo Investment Institute commented, as quoted on nbcnews.com.

The hope of the passage of some sort of fiscal stimulus deal was probably another reason for the rally. Growth investing will also likely to stay strong maintaining the ongoing trend. Against this backdrop, below we highlight a few leveraged ETFs that won the maximum on the post-election day rally.

S&P Biotech Bull 3X Direxion (LABU - Free Report) – Up 18.8%

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 expense ratio of the fund is 1.04%.

Dow Jones Internet Bull 3X Direxion (WEBL - Free Report) – Up 14.8%

The underlying Dow Jones Internet Composite Index includes only companies whose primary focus is Internet related. The fund charges 98 bps in fees.

Homebuilders & Suppliers Bull 3X Direxion (NAIL - Free Report) – Up 14.5%

The underlying Dow Jones U.S. Select Home Construction Index measures U.S. companies in the home construction sector that provide a wide range of products and services related to homebuilding. The expense ratio of the fund is 0.99%.

CSI China Internet Index Bull 2X Direxion (CWEB - Free Report) – Up 14%

The underlying CSI Overseas China Internet Index includes securities primarily listed outside of China, have been listed for at least three months and meet one of the three following criteria: the company is incorporated in mainland China; the operation center for the company is in mainland China; or at least 50% of the revenue from the company is from mainland China. The expense ratio of the fund is 1.30%.

Ultrapro QQQ Proshares (TQQQ - Free Report) – Up 13.5%

The underlying NASDAQ-100 Index includes 100 of the largest domestic and international non-financial companies listed on The NASDAQ Stock Market based on market capitalization. The index reflects companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology. The fund charges 95 bps in fees.

Microsectors Fang+ 3X ETN (FNGU - Free Report) – Up 12.9%

The underlying NYSE FANG+ index includes 10 highly liquid stocks that represent a segment of the technology and consumer discretionary sectors consisting of highly-traded growth stocks of technology and tech-enabled companies. The expense ratio of the fund is 95 bps in fees (read: 5 Best Performing Leveraged ETFs of Q3).      

Healthcare Bull 3X Direxion ETF (CURE - Free Report) – Up 12.9%

The underlying Healthcare Select Sector Index includes companies from the following industries pharmaceuticals, health care providers & services, health care equipment & supplies, biotechnology, life sciences tools & services, and health care technology. The expense ratio of the fund is 1.08%.

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