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5 Best Leveraged ETF Areas of Last Week

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Wall Street was muted last week. The S&P 500, the Dow Jones and the Nasdaq Composite added about 0.6%, 0.3% and 0.6% past week, respectively. The week was marked by the bitcoin rally, some Reddit bets and an uptrend in some cyclical sectors. Below we highlight a few winning leveraged ETF areas that returned at least 10% last week.

Semiconductors

The coronavirus pandemic has boosted the demand for digitization. Along with higher demand, scarcity of chips has been aiding shares of semiconductor companies. These companies are now in a position to charge higher for commodity chips like memory. This is why, Semiconductor Bull 3X Direxion (SOXL - Free Report) (up 24.6%) and Ultra Semiconductors Proshares (USD - Free Report) (up 15.7%) were prominent winners last week.

Energy

Oil prices have staged a rally past week with United States Oil Fund LP (USO - Free Report) and United States Brent Oil Fund LP (BNO) adding about 2.6% and 3.2%, respectively.  Acold snap shut wells and refineries in Texas, the biggest crude producing state in the United States. Microsectors U.S. Big Oil Index 3X ETN (NRGU - Free Report) (up 18.1%) and S&P Oil & Gas Exploration Bull 3X Direxion (GUSH) (up 15.9%) were the maximum gainers in the space.

FANG+

FANG stocks have been in a sweet spot for the past one year. Some upbeat earnings have been facilitating the space in recent trading. Microsectors Fang+ 3X ETN (FNGU - Free Report) added 15.3% last week.

China

The space has been on a stellar ride lately. China’s GDP grew 6.5% in the fourth quarter of 2020, after 4.9% growth in the third quarter. The metric also beat economists’ forecast of 6.1% growth, according to a Reuters' poll. Notably, the world’s second-largest economy recorded economic growth of 2.3% in 2020. No wonder, such upbeat economic conditions would continue to boost Chinese equities. China’s Internet stocks were the top-most winners in the space. CSI 300 China A 2X Direxion (CHAU - Free Report) (up 15.1%) and CSI China Internet Index Bull 2X Direxion (CWEB - Free Report) (up 14.1%) were the gainers.

Banks

The risk-on rally has led to a steepening yield curve lately. As banks seek to borrow money at short-term rates and lend at long-term rates, a steepening yield curve will earn more on lending and pay less on deposits. Credit outlook is also improving for U.S. banks. Regional Banks Bull 3X Direxion (DPST - Free Report) added 10.9%.

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