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U.S. stocks rallied on Friday, helping the week to end on a big note as bond yields backtracked slightly from their recent rise. The S&P 500 (up 1.9%), the Dow Jones (up 1.8%), the Nasdaq Composite (up 2.6%) and the Russell 2000 (up 2.0%) — all gained last week.
In fact, the S&P 500 logged the best week since January. The Dow Jones snapped its four-week losing streak as the yield on benchmark 10-year Treasury note dipped below the 4% mark.
Several times last week, the 10-year rate rose above that point, compelling stocks to nosedive. Now, it all depends on the release of U.S. economic datapoints. The ISM Manufacturing PMI inched up to 47.7 in February 2023 from 47.4 in January (which was the lowest since May 2020), but the data were shy of expectations of 48.
Market sentiment received a lift on Thursday after Atlanta Fed President Raphael Bostic said he thinks the central bank can keep its interest rate hikes to 25 basis points rather than the half-point increase backed by some other officials, as quoted on CNBC. However, Fed Governor Christopher J. Waller adopted a hawkish tone in his comments, raising the likelihood of a higher terminal rate if inflation numbers don’t cool.
Among big developments in the corporate world, Salesforce (CRM - Free Report) and Zoom (ZM - Free Report) came up with upbeat earnings and recorded considerable gains. Tesla (TSLA - Free Report) hosted its Investors Day, which lacked details about its future plan. This is why Tesla shares slumped about 6% in the key trading session. However, the shares jumped to close out the week as the electric-car maker reported strong China sales.
Against this backdrop, below, we have highlighted a few winning inverse/leveraged ETFs of last week.
ETFs in Focus
Ultra Bloomberg Natural Gas 2X ETF (BOIL - Free Report) – Up 31.88%
The ProShares Ultra Bloomberg Natural Gas seeks daily investment results, before fees and expenses, that correspond to two times (2X) the daily performance of the Bloomberg Natural Gas Subindex. The fund charges 95 bps in fees.
Daily Metal Miners Bull 2X ETF Direxion – Up 20.85%
The Direxion Daily Metal Miners Bull 2X Shares seeks daily investment results, before fees and expenses, of 200% of the performance of the S&P Metals and Mining Select Industry Index. The expense ratio of the fund is 1.07%.
ETFMG Prime Junior Silver Miners 2X ETF – Up 20.20%
The ETFMG Prime 2x Daily Junior Silver Miners ETF seeks daily investment results, before fees and expenses, that correspond to 200% of the return of the Prime Junior Silver Miners & Explorers Index for a single day. The fund charges 95 bps in fees.
CSI China Internet Index Bull 2X ETF Direxion (CWEB - Free Report) – Up 19.35%
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 the fund is 1.32%.
The MicroSectors Gold Miners 3X Leveraged ETNs is linked to three times leveraged participation in the performance of the S-Network MicroSectors Gold Miners Index. The fund charges 95 bps in fees.
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Best Inverse/Leveraged ETFs of Last Week
U.S. stocks rallied on Friday, helping the week to end on a big note as bond yields backtracked slightly from their recent rise. The S&P 500 (up 1.9%), the Dow Jones (up 1.8%), the Nasdaq Composite (up 2.6%) and the Russell 2000 (up 2.0%) — all gained last week.
In fact, the S&P 500 logged the best week since January. The Dow Jones snapped its four-week losing streak as the yield on benchmark 10-year Treasury note dipped below the 4% mark.
Several times last week, the 10-year rate rose above that point, compelling stocks to nosedive. Now, it all depends on the release of U.S. economic datapoints. The ISM Manufacturing PMI inched up to 47.7 in February 2023 from 47.4 in January (which was the lowest since May 2020), but the data were shy of expectations of 48.
The reading hints at a fourth successive month of declining factory activity. A downbeat ISM data probably cooled down the higher probability of a steeper rise in rates (read: 3 Sector ETFs Looking Decent Despite Soft Manufacturing Data).
Market sentiment received a lift on Thursday after Atlanta Fed President Raphael Bostic said he thinks the central bank can keep its interest rate hikes to 25 basis points rather than the half-point increase backed by some other officials, as quoted on CNBC. However, Fed Governor Christopher J. Waller adopted a hawkish tone in his comments, raising the likelihood of a higher terminal rate if inflation numbers don’t cool.
Among big developments in the corporate world, Salesforce (CRM - Free Report) and Zoom (ZM - Free Report) came up with upbeat earnings and recorded considerable gains. Tesla (TSLA - Free Report) hosted its Investors Day, which lacked details about its future plan. This is why Tesla shares slumped about 6% in the key trading session. However, the shares jumped to close out the week as the electric-car maker reported strong China sales.
Against this backdrop, below, we have highlighted a few winning inverse/leveraged ETFs of last week.
ETFs in Focus
Ultra Bloomberg Natural Gas 2X ETF (BOIL - Free Report) – Up 31.88%
The ProShares Ultra Bloomberg Natural Gas seeks daily investment results, before fees and expenses, that correspond to two times (2X) the daily performance of the Bloomberg Natural Gas Subindex. The fund charges 95 bps in fees.
Daily Metal Miners Bull 2X ETF Direxion – Up 20.85%
The Direxion Daily Metal Miners Bull 2X Shares seeks daily investment results, before fees and expenses, of 200% of the performance of the S&P Metals and Mining Select Industry Index. The expense ratio of the fund is 1.07%.
ETFMG Prime Junior Silver Miners 2X ETF – Up 20.20%
The ETFMG Prime 2x Daily Junior Silver Miners ETF seeks daily investment results, before fees and expenses, that correspond to 200% of the return of the Prime Junior Silver Miners & Explorers Index for a single day. The fund charges 95 bps in fees.
CSI China Internet Index Bull 2X ETF Direxion (CWEB - Free Report) – Up 19.35%
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 the fund is 1.32%.
Microsectors Gold Miners 3X ETN (GDXU - Free Report) – Up 19.34%
The MicroSectors Gold Miners 3X Leveraged ETNs is linked to three times leveraged participation in the performance of the S-Network MicroSectors Gold Miners Index. The fund charges 95 bps in fees.