Back to top

Image: Bigstock

5 Leveraged ETFs That Gained At Least 10% Last Week

Read MoreHide Full Article

The S&P 500, the Dow Jones and the Nasdaq Composite gained about 1.7%, 1.0% and 2.1%, respectively, last week. All three indexes touched all-time closing highs to end last week, despite the downbeat jobs and manufacturing report. The small-cap index Russell 2000 was also up 2% last week.

Hopes of faster-than-expected vaccine rollouts and fresh stimulus, and a divided Congress in the United States bolstered Wall Street. A bipartisan group of lawmakers earlier last week proposed a $908 billion plan, but Senate Majority Leader Mitch McConnell indicated that he favors a smaller package near $500 billion, as quoted on MarketWatch.

Against this backdrop, below we highlight a few leveraged ETF areas that topped last week.

Direxion Semiconductor Bull 3X (SOXL - Free Report) – Up 19.4%

The global semiconductor industry is in a sweet spot. Per the latest report from the World Semiconductor Trade Statistics (WSTS), the global semiconductor market is expected to increase 5.1% year over year in 2020 driven by memory and sensors. For 2021, growth is projected at 8.4% based on the expected growth of memory and optoelectronics. This piece of information charged up the semiconductor stocks last week.

S&P 500 High Beta Bull 3X Direxion (HIBL - Free Report) – Up 15.4%

Vaccine optimism (which indicates return to economic normalcy) and a divided congress (which indicates the likely status quo in policy matters) mean a steady rally in stocks. Both factors fueled Wall Street in recent sessions and will likely to do so in the coming days.

Microsectors U.S. Big Oil Index 3X ETN (NRGU - Free Report) – Up 12.3%

The coronavirus-led global slowdown has weighed on oil demand. However, back-to-back vaccine news has boosted the global markets as well as brightened the demand outlook for the energy sector. Moreover, OPEC’s decision to increase production in a phased manner or gradually boosted oil prices last week. The group will now raise output by 500,000 barrels per day starting January though the group had cut output by nearly 8 million barrels per day this year to fight the pandemic.

Etracs 2X Small Cap High Dividend ETN (SMHB - Free Report) – Up 11.0%

Vaccine news and stimulus hopes bode well for the small caps. In any case, small-cap stocks have been exhibiting an uptrend lately as these have been one of the most battered segments.  Now, with new-found optimism in the markets, this value corner is soaring. The added advantage of the product SMHB is its high dividend paying nature, which has been lucrative amid the ongoing low-rate environment.

S&P Biotech Bull 3X Direxion (LABU - Free Report) – Up 10.8%

The biotech corner has been benefiting from researches on COVID-19 vaccine and developments as well as solid medical progress in genomics. The genomics area is especially tracked for oncology treatment. Plus, healthcare and biotech is relatively defensive in nature and survive market volatility easily.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>