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5 Top Inverse/Leveraged ETFs of Last Week

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Big three U.S. indexes including the S&P 500 (up 1.33%), the Dow Jones (0.40%), the Nasdaq Composite (up 2.70%) and the Russell 2000 (up 4.2%) made last week a winning one for investors. Crypto-related investments and clean-energy ETFs hogged attention last week.

The month was great from the bitcoin point of view as the investing world welcomed the first U.S.-listed bitcoin futures ETF – ProShares Bitcoin Strategy ETF (BITO). The ETF started trading on Oct 19, making the world’s biggest cryptocurrency available in a tax-efficient wrapper to investors via any brokerage account (read: What You Should Know About Bitcoin ETFs).

Plus, Valkyrie Investments’ bitcoin futures exchange-traded fund (BTF) also won the green signal of the U.S. Securities and Exchange Commission. The fund BTFstarted trading from Oct 22. VanEck will join ProShares in launching a bitcoin futures exchange-traded fund (XBTF).

No wonder, crypto-related companies that focus on the blockchain technology were in the positive zone last week. Another winning area was clean energy thanks to the 26th Conference of Parties (COP26) at Glasgow. This summit aims to lower greenhouse gas emissions and tackle global warming.

Added to this, there was a downbeat U.S. GDP growth report. The American economy grew an annualized 2% in Q3 of 2021, falling shy of market forecasts of 2.7% and slowing sharply from 6.7% in Q2. It is the weakest growth of pandemic recovery as government support is fading and a surge in Delta-variant related COVID-19 cases and global supply chain issues hurt consumption and production in the period (read: 5 ETFs to Win Despite Downbeat U.S. GDP Growth).

Against this backdrop, below we highlight a few inverse/leveraged ETFs that gained handsomely past week.

ETFs in Focus

Direxion Daily Global Clean Energy Bull 2X Share (KLNE - Free Report) – Up 15.0%

With COP-26 taking place in October and delegates from about 200 countries announcing how they will cut emissions by 2030, alternative energy had every reason to rally. Notably, India and the United Kingdom will launch a project that aims to create a solar grid connecting countries in different parts of the world at the upcoming U.N. climate talks in Glasgow, Scotland.         

FTSE China Bear 3X Direxion (YANG - Free Report) – Up 13.6%

Chinese equities have been under pressure for quite some time.  The China government’s crackdown on various sectors, especially technology, weighed on it. Last week, Chinese developers were faced with falling shares and bonds, creditors seizing assets and rating agencies offering more downgrades, ahead of a final debt payment deadline for China Evergrande Group on Friday. However, Evergrande finally made coupon payment before Friday deadline.

Consumer Discretionary Bull 3X Direxion (WANT - Free Report) – Up 13.1%

Surprisingly, consumer confidence in the United States rose in October primarily on the heels of easing Delta-variant concerns, improving labor market conditions, a rebounding U.S. economy and accelerated coronavirus vaccine rollouts. The Conference Board's measure of the consumer confidence index stands at 113.8 in comparison to 109.8 in September. The metric has finally broken the streak of three consecutive monthly declines. October’s reading also beat the consensus estimate of the metric, coming in at 108.3, per a Reuters’ poll. The metric continues to be below the pre-pandemic level of 132.6 in February 2020 (read: ETFs to Gain as US Consumer Confidence Rises in October).

Microsectors Fang & Innovation 3X ETN (BULZ - Free Report) – Up 11.6%

The fund follows the Solactive FANG Innovation Index that tracks the stock prices of 15 large-capitalization U.S. technology stocks. Microsoft and Alphabet earnings came in upbeat last week. Facebook earnings too beat estimates. Such results have favored the already-hot FANG zone.

Etfmg 2X Daily Inverse Alternative Harvest ETF (MJIN - Free Report) – Up 9.9%

MJIN looks to track the daily leveraged investment results, before fees and expenses, of two times the inverse (-2x) (or opposite) of the performance of the Prime Alternative Harvest Index. The index offers investors access to the global cannabis ecosystem and benefits directly from widespread medicinal and recreational legalization initiatives. Delayed U.S. federal reform probably have weighed on the marijuana space. Shares of Canadian cannabis company Hexo (HEXO - Free Report) declined on reporting losses in the last-reported quarter. The Hexo event pulled down shares of many other cannabis stocks.