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The S&P 500 Index just recorded its worst streak since a five-day decline that ended on Feb 22. The index was off 1.69%, the Dow Jones retreated 2.15% and the Nasdaq lost 1.61% last week. The Russell 2000 dropped 2.81% last week. Investors are truly growing more cautious about the rise of Delta variant of Covid-19. Moreover, September is seasonally a weak month for Wall Street.
With the Delta variant surging, new cases of COVID-19 jumped 300% over the long Labor Day weekend from the year-ago holiday period, according to a new tally from Johns Hopkins University, as quoted on usanews.com. The resurging cases triggered fears about new lockdowns, which is raising worries regarding the sustainability of economic recovery from the pandemic-led slump.
Meanwhile, jobs data came in lower than expected. The U.S. economy added 235,000 jobs in August 2021, the lowest in seven months and well below the forecast of 750,000 as a surge in COVID-19 infections probably kept companies from hiring and workers from actively looking for a job (read: Winning ETF Areas Amid Downbeat August Jobs Data).
The consumer confidence in the United States slipped to a six-month low in August. The Conference Board's measure of consumer confidence index stands at 113.8 (the lowest level since February), comparing unfavorably with July’s reading of 125.1. August’s reading also missed the consensus estimate of the metric declining to 124, per a Reuters’ poll.
All these factors weighed on markets and inverse ETFs soared. Below we highlight a few inverse ETFs that gained handsomely last week.
Winning ETFs in Focus
Real Estate Bear 3X Direxion (DRV - Free Report) – Up 12.04%
The Direxion Daily MSCI Real Estate Bear 3x Shares seek daily investment results, before fees and expenses, of 300% of the inverse of the performance of the MSCI US IMI Real Estate 25/50 Index. The expense ratio of the fund is 1.03%.
The Direxion Daily S&P Biotech Bear 3X Shares fund seeks daily investment results, before fees and expenses, of 300% of the inverse of the performance of the S&P Biotechnology Select Industry Index. The expense ratio of the fund is 1.07%.
Ultrapro Short Russell 2000 ETF (SRTY - Free Report) – Up 10.08%
The ProShares UltraPro Short Russell2000 seeks daily investment results, before fees and expenses, that correspond to triple (300%) the inverse (opposite) of the daily performance of the Russell 2000 Index. The expense ratio of the fund is 0.95%.
The Direxion Daily Small Cap Bear 3x Shares seeks daily investment results, before fees and expenses, of 300% of the inverse (or opposite) of the performance of the Russell 2000. The fund’s expense ratio is 1.10%.
Ultrapro Short Midcap 400 Proshares (SMDD - Free Report) – Up 9.59%
The ProShares UltraPro Short MidCap400 seeks daily investment results, before fees and expenses, that correspond to triple (300%) the inverse (opposite) of the daily performance of the S&P MidCap 400 Index. The fund charges 95 bps in fees.
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September Lull Starts: Inverse ETFs Won Last Week
The S&P 500 Index just recorded its worst streak since a five-day decline that ended on Feb 22. The index was off 1.69%, the Dow Jones retreated 2.15% and the Nasdaq lost 1.61% last week. The Russell 2000 dropped 2.81% last week. Investors are truly growing more cautious about the rise of Delta variant of Covid-19. Moreover, September is seasonally a weak month for Wall Street.
With the Delta variant surging, new cases of COVID-19 jumped 300% over the long Labor Day weekend from the year-ago holiday period, according to a new tally from Johns Hopkins University, as quoted on usanews.com. The resurging cases triggered fears about new lockdowns, which is raising worries regarding the sustainability of economic recovery from the pandemic-led slump.
Meanwhile, jobs data came in lower than expected. The U.S. economy added 235,000 jobs in August 2021, the lowest in seven months and well below the forecast of 750,000 as a surge in COVID-19 infections probably kept companies from hiring and workers from actively looking for a job (read: Winning ETF Areas Amid Downbeat August Jobs Data).
The consumer confidence in the United States slipped to a six-month low in August. The Conference Board's measure of consumer confidence index stands at 113.8 (the lowest level since February), comparing unfavorably with July’s reading of 125.1. August’s reading also missed the consensus estimate of the metric declining to 124, per a Reuters’ poll.
All these factors weighed on markets and inverse ETFs soared. Below we highlight a few inverse ETFs that gained handsomely last week.
Winning ETFs in Focus
Real Estate Bear 3X Direxion (DRV - Free Report) – Up 12.04%
The Direxion Daily MSCI Real Estate Bear 3x Shares seek daily investment results, before fees and expenses, of 300% of the inverse of the performance of the MSCI US IMI Real Estate 25/50 Index. The expense ratio of the fund is 1.03%.
S&P Biotech Bear 3X Direxion (LABD - Free Report) – Up 10.83%
The Direxion Daily S&P Biotech Bear 3X Shares fund seeks daily investment results, before fees and expenses, of 300% of the inverse of the performance of the S&P Biotechnology Select Industry Index. The expense ratio of the fund is 1.07%.
Ultrapro Short Russell 2000 ETF (SRTY - Free Report) – Up 10.08%
The ProShares UltraPro Short Russell2000 seeks daily investment results, before fees and expenses, that correspond to triple (300%) the inverse (opposite) of the daily performance of the Russell 2000 Index. The expense ratio of the fund is 0.95%.
Smallcap Bear 3X Direxion (TZA - Free Report) – Up 10.0%
The Direxion Daily Small Cap Bear 3x Shares seeks daily investment results, before fees and expenses, of 300% of the inverse (or opposite) of the performance of the Russell 2000. The fund’s expense ratio is 1.10%.
Ultrapro Short Midcap 400 Proshares (SMDD - Free Report) – Up 9.59%
The ProShares UltraPro Short MidCap400 seeks daily investment results, before fees and expenses, that correspond to triple (300%) the inverse (opposite) of the daily performance of the S&P MidCap 400 Index. The fund charges 95 bps in fees.