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Top Leveraged ETFs of Last Week

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Wall Street was upbeat last week with the S&P 500, the Dow Jones, the Nasdaq Composite and the Russell 2000 gaining 1.16%, 0.94%, 2.06% and 2.42%, respectively. The reason behind the optimism is that Covid-19 cases in the United States fell to their lowest levels since June while the United States prepared for the Memorial Day weekend, making the case for reopening trade stronger.
 
This is especially true against the backdrop of a fast-recovering economy supported by continued progress in the development of more COVID-19 vaccines, rapid vaccine rollout, reopening of the economy as well as fiscal and monetary stimulus. Almost 50% of all Americans have received at least one dose of a COVID-19 vaccine.

The combination of these factors has led to higher demand for all types of products and services in the economy. More than 37 million people were expected to travel from May 27 through May 31, marking a 60% uptick from last year’s record-low of 23 million travelers, AAA said, as quoted on CNN.

Economic data have also come in upbeat. The IHS Markit U.S. Manufacturing PMI jumped to a fresh record of 61.5 in May 2021, beating market forecasts of 60.2 amid stronger demand. New orders also grew at a record pace while output growth took pace despite the marked worsening in vendor performance due to limited operating activities (read: ETFs to Play as Dow Logs 3-day Winning Streak).

Against this backdrop, below we highlight a few leveraged ETFs that shot up last week.

ETFs in Focus 

Semiconductor Bull 3X Direxion (SOXL - Free Report) – Up 13.6%

The underlying Direxion Daily Semiconductor Bull 3x Shares seeks daily investment results, before fees and expenses, of 300% of the performance of the PHLX Semiconductor Sector Index. The fund charges 99 bps in fees.

Aerospace Defense Bull 3X Direxion (DFEN - Free Report) – Up 12.15%

The Direxion Daily Aerospace & Defense Bull 3X Shares seeks daily investment results, before fees and expenses, of 300% of the performance of the Dow Jones U.S. Select Aerospace & Defense Index. The expense ratio is 1.01%.
    
CSI 300 China A 2X Direxion (CHAU - Free Report) – Up 11.48%

The underlying Direxion Daily CSI 300 China A Share Bull 2x Shares seeks daily investment results, before fees and expenses, of 200% of the performance of the CSI 300 Index.

Homebuilders & Suppliers Bull 3X Direxion (NAIL - Free Report) – Up 11.24%

The underlying Direxion Daily Homebuilders & Supplies Bull 3X Shares seeks daily investment results, before fees and expenses, of 300% of the performance of the Dow Jones U.S. Select Home Construction Index. The fund’s expense ratio is 1.00%.

Microsectors Fang+ 3X ETN (FNGU - Free Report) – Up 10.63%

The 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 fund charges 95 bps in fees.

Emerging Markets Bull 3X Direxion (EDC - Free Report) – Up 10.6%

The Direxion Daily MSCI Emerging Markets Bull 3x Shares seek daily investment results, before fees and expenses, of 300% of the price performance of the MSCI Emerging Markets Index. The expense ratio is 1.28%.

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