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4 Best Inverse/Leveraged ETF Areas of Last Week

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A record-breaking rally in Wall Street's main indexes paused earlier last week due to global supply chain issues, indicating that the inflationary pressure will not cool down anytime soon. This, in turn, boosted bond yields, hurting stocks. The S&P 500 (down 0.3%), the Dow Jones (down 0.6%), the Nasdaq (down 0.7%) and the Russell 2000 (down 1.0%) — all lost in values last week.  

Still, there were a few ETF investing areas that gained last week, brushing aside the general downtrend in the market. Ultrashort Bloomberg Natural Gas ETF (KOLD - Free Report) , Etfmg 2X Daily Alternative Harvest ETF L), CSI China Internet Index Bull 2X Direxion (CWEB - Free Report) and Microsectors Gold Miners 3X ETN (GDXU - Free Report) deserve a mention in this regard (read: Gold Regains Sheen: 5 ETFs to Tap).

Natural Gas

Natural gas prices slumped 13% in the week. The weather is expected to be warmer than normal in the next two weeks throughout most of the United States. This is why the already sky-high price of natural gas fell last week.

Ultrashort Bloomberg Natural Gas ETF (KOLD - Free Report) – Up 30.6%

The ProShares UltraShort Bloomberg Natural Gas seeks daily investment results, before fees and expenses, that correspond to two times the inverse (-2x) of the daily performance of the Bloomberg Natural Gas Subindex.

The index is intended to reflect the natural gas segment of the commodities market. The index consists of futures contracts on natural gas. KOLD charges 95 bps in fees.

Cannabis/Marijuana     

Cannabis stocks rose on reports that Republican Representative Nancy Mace from South Carolina has raised the possibility of a bill that seeks to legalize weed. Sundial Growers gained on its share buyback news. All these developments helped the sector gain last week.

Etfmg 2X Daily Alternative Harvest ETF (MJXL) – Up 23.4%

The ETFMG 2x Daily Alternative Harvest ETF seeks daily investment results, before fees and expenses, that correspond to two times the return of the Prime Alternative Harvest Index for a single day.

The index provides a benchmark for investors interested in benefitting from the global cannabis industry, including both medicinal and recreational legalization initiatives. MJXL charges 95 bps in fees.

China

China ETFs advanced last week after a period of downturn due to Beijing’s regulatory clampdown. Shares of Chinese companies listed in the United States rallied due to investor optimism after massive Singles’ Day sales and a report that Didi Global Inc. is preparing to relaunch its apps.

Alibaba Group Holding Ltd. and JD.com’s Singles’ Day shopping festival reported record sales. A report that ride-hailing company Didi Global is planning to launch its apps in China by the end of the year also gave China stocks the much-needed boost (read: Top ETF Deals to Ride on the Singles Day Shopping Blitz).

CSI China Internet Index Bull 2X Direxion (CWEB - Free Report) – Up 22.2%

The Direxion Daily CSI China Internet Index Bull 2x Shares seeks daily investment results, before fees and expenses, of 200% of the performance of the CSI Overseas China Internet Index. The expense ratio of CWEB is 1.31%.

FTSE China Bull 3X Direxion (YINN - Free Report) – Up 15.5%

The Direxion Daily FTSE China Bull 3X Shares seeks daily investment results, before fees and expenses, of 300% of the performance of the FTSE China 50 Index.The expense ratio of YINN is 1.36%.

Gold Miners

Gold has been showing strength lately, especially after higher inflation data, which has raised the appeal of gold as a hedge against inflation. Gold bullion ETF SPDR Gold Shares (GLD - Free Report) added about 2.2% last week. Notably, the consumer price index rose 6.2% year over year in October, the maximum since December 1990 and surpassed the 5.4% year-over-year rise in September (read: U.S. Inflation at a 30-Year High: 5 Sector ETFs to Win).

Microsectors Gold Miners 3X ETN (GDXU - Free Report) – Up 19.5%

The MicroSectors Gold Miners 3X Leveraged ETNs is linked to a three-times leveraged participation in the performance of the S-Network MicroSectors Gold Miners Index.

The S-Network MicroSectors Gold Miners Index seeks to provide exposure to the performance of the VanEck Vectors Gold Miners ETF and the VanEck Vectors Junior Gold Miners ETF. GDXU charges 95 bps in fees.

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