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Leveraged ETF: How to Use & What's Hot Now?

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  • (1:00) - Understanding The Recent Stock Market Movement: Is The Worst Over?
  • (6:15) - Who Were The Best Performers of January
  • (10:35) - Which Sectors Are Most Attractive For Short Term Investing?
  • (13:00) - What Are Leverage and Inverse ETFs?
  • (19:10) - How Do These Products Fit Into Your Portfolio?
  • (22:00) - What Are The Best Thematic ETFs For 2022?


In this episode of ETF Spotlight, I speak with Dave Mazza, Managing Director at Direxion Investments, which is one of the largest issuers of leveraged and inverse ETFs.

January was a terrible month for stocks. The S&P 500 (SPY - Free Report) lost 5.3% and the Nasdaq (QQQ - Free Report) plunged 9%, the biggest monthly drop for the indexes since March 2020. The month however ended with an impressive resurgence, particular in tech stocks.

Leveraged and inverse ETFs like the Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X Shares (GUSH - Free Report) are quite popular with investors lately as energy stocks have befitted from the surge in crude prices. Many also bought the dips in ETFs like the Direxion Daily Semiconductor Bull (SOXL - Free Report) , betting on a rebound in NVIDIA (NVDA - Free Report) , AMD (AMD - Free Report) and other popular chip stocks.

Some investors use inverse ETFs like the Direxion Daily S&P 500 Bear 1X Shares (SPDN - Free Report) to hedge their portfolios when the market sentiment is bearish.

Geared funds are among the most misunderstood products in the ETF world. These ETFs are designed to achieve their stated performance goal on a daily basis and their performance can differ significantly from their stated daily performance objectives if held for a longer period.

Compounding can have both favorable and adverse effects on the returns. These products perform best in trending markets with low volatility. However, trading has been quite choppy this year.  We discuss the impact of volatility on these ETFs and how investors should use these strategies in their portfolios?

Dave’s favorite thematic ETFs for 2022 include the Direxion Moonshot Innovators ETF (MOON - Free Report) and the Direxion mRNA ETF (MSGR - Free Report) .

Tune in to the podcast to learn more.

Make sure to be on the lookout for the next edition of ETF Spotlight and also make sure to subscribe! If you have any comments or questions, please email

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