Back to top

Image: Bigstock

7 Best Leveraged ETFs of Last Week

Read MoreHide Full Article

Overall, last week was upbeat for Wall Street with the S&P 500, the Dow Jones, the Nasdaq Composite and the Russell 2000 gaining about 3.82%, 4.0%, 3.6% and 2.4%, respectively. It was the S&P 500's best week since February at record high.

The rally was spurred by bets that the new COVID-19 variant Omicron may cause milder illness than previously feared, which eased fears of over further lockdowns.

The economic-reopening-friendly investments jumped considerably with the oil rebound deserving a special mention. United States Oil Fund LP (USO - Free Report) added 4.2% last week and brent crude United States Brent Oil Fund LP (BNO - Free Report) gained 3.9%. In fact, this was the biggest weekly gain for oil since late August.

Reports in South Africa said Omicron cases there had only shown mild symptoms and the top U.S. infectious disease official, Anthony Fauci, told CNN, “it does not look like there’s a great degree of severity” so far, as quoted on CNBC.

Meanwhile, the CPI jumped at its fastest annual pace in nearly 40 years in November. The datapoints were almost in line with market expectations.  With many investors fearing a number above 7%, this print came out as a big relief that sent the market higher on Friday.

Pfizer Inc. (PFE) and BioNTech SE (BNTX) also provided support in easing out worries mid last week. Going by their preliminary lab tests, the companies have claimed that three doses of their COVID-19 vaccine will efficiently neutralize the Omicron variant. Completion of two doses can assist in providing protection against the disease getting severe and requirements for hospitalizations (per a CNBC article) (read: ETFs to Play the Reopening Trade as Omicron Fear Subsides).

Against this backdrop, below we highlight a few leveraged ETFs that stood tall last week.

ETFs in Focus    

Technology Bull 3X Direxion (TECL - Free Report) – Up 17.9%

The underlying Technology Select Sector Index includes domestic companies from the following industries: computers & peripherals; software; diversified telecommunications services; communications equipment; semiconductors & semiconductor equipment; internet software & services; IT services; electronic equipment, instruments & components; wireless telecommunication services; & office electronics. The expense ratio of the ETF is 1.01%.

CSI China Internet Index Bull 2X Direxion (CWEB - Free Report) – Up 16.9%

The underlying CSI Overseas China Internet Index includes securities primarily listed outside of China, have been listed for at least three months and meet one of the three following criteria: the company is incorporated in mainland China; the operation center for the company is in mainland China; or at least 50% of the company’s revenues is from mainland China. The expense ratio of the ETF is 1.31%.

Homebuilders & Suppliers Bull 3X Direxion (NAIL - Free Report) – Up 16.5%

The underlying 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. The expense ratio of the ETF is 1.00%.

Ultra Bloomberg Crude Oil ETF (UCO - Free Report) – Up 16.2%

The underlying Bloomberg Commodity Balanced WTI Crude Oil Index is intended to reflect the crude oil segment of the commodities market. The index consists of futures contracts on crude oil only. The expense ratio of the ETF is 0.95%.

Microsectors Fang+ 3X ETN (FNGU - Free Report) – Up 13.2%

The underlying 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 expense ratio of the ETF is 0.95%.

Ultrapro Dow30 ETF (UDOW - Free Report) – Up 12.4%

The underlying Dow Jones Industrial Average Index is price-weighted and is calculated as a simple average. The index includes 30 large-cap, blue-chip U.S. stocks, excluding utility and transportation companies. They represent the leading U.S. companies in the industries driving the U.S. stock market, are widely held by investors and have long records of sustained growth. The expense ratio of the ETF is 0.95%.              

S&P 500 High Beta Bull 3X Direxion (HIBL - Free Report) – Up 12.3%

The underlying S&P 500 High Beta Index selects 100 securities to include in the index from the S&P 500 Index that have the highest sensitivity to beta over the past 12 months. The expense ratio of the ETF is 1.03%.