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5 Best Leveraged ETFs of Last Week

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The last week was moderately upbeat for Wall Street. The S&P 500, the Dow Jones and the Nasdaq Composite added 1.7%, 1% and 1.9%, respectively and the Russell 2000 index lost about 1.2%. Against this backdrop, below we highlight a few leveraged ETF areas that were the most gainful last week (read: 5 Best-Leveraged ETFs of the Second Quarter).

Technology– Technology Bull 3X Direxion (TECL - Free Report) – Up 9.7%

Despite the economic reopening, the space has been in fine fettle.Microsoft (MSFT) topped $2 trillion market cap for the first time at the close of the trading session on Jun 24. Microsoft is benefiting especially from its cloud platform Azure as the pandemic has accelerated technology adoption. Apart from Microsoft’s success, the tech space has been benefitting from the ‘new normal’ or stay-at-home trend (read: Microsoft Tops $2 Trillion Market Cap: ETFs in Focus).

Natural Gas – Ultra Bloomberg Natural Gas ETF (BOIL - Free Report) ) – Up 9.2%

The underlying Bloomberg Natural Gas Subindex is intended to reflect the natural gas segment of the commodities market. The index consists of futures contracts on natural gas.Natural gas prices jumped to a two-month high. Scorching heat and improved export demand indicated even tighter balances ahead of the peak summer cooling season.  The July Nymex contract was hovering around the highest close last week for the prompt month since January 2019.

Homebuilding – Homebuilding & Suppliers Bull 3X Direxion (NAIL - Free Report) – Up 8.4%

The 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. U.S. mortgage rates dropped to 1.44% on Jul 2, 2021 from 1.54% touched on Jun 25. This has probably boosted the rate-sensitive sectors like homebuilding.

Semiconductors – Ultra Semiconductors ETF (USD - Free Report) – Up 6.8%

The semiconductor space is due for immense growth. Micron Technology sees immense growth for semiconductors in 5G and electric vehicles, according to CEO Sanjay Mehrotra, as quoted on CNBC. He indicated that automotive, electric vehicles, smartphones, data centers, gaming, industrial applications are all pointing to the growing need for semiconductors, which is why the chip space is, in fact, witnessing shortage. Overall, the future of the space is thriving with possibilities (read: 5 Top-Performing Semiconductor ETFs YTD).

U.S. Treasury – 20+ Year Treasury Bull 3X Direxion (TMF - Free Report) – Up 6.7%

Since the U.S. treasury yield curve dropped last week, treasury ETFs like TMF gained strength. U.S. treasury yields and the bond prices are inversely related. The yield also declined following the June jobs report, which shows a slight uptick in unemployment.

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