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Last week was upbeat for Wall Street as inflation showed signs of cooling. This along with recent regional banking crisis should lead the Fed to opt for a go-slow approach in the monetary tightening policy. The S&P 500 (up 3.5%), the Dow Jones (up 3.2%), the Nasdaq (up 3.4%) and the Russell 2000 (up 3.9%) – all offered solid gains last week.
The personal consumption expenditure price index in the United States increased 0.3% sequentially in February 2023, easing from a 0.6% rise in January. Among other economic data that released last week was GDP data for the fourth quarter. The data revealed a slight decrease in Q4 GDP to 2.6% from 2.7%, while jobless claims rose 7K to 198K in a sign that the labor market remains strong for now despite rising layoffs.
As long as the U.S. treasury yields are concerned, 10-year U.S. treasury yield ended the week at 3.48% while it was 3.53% at the start of the week. Against this backdrop, below we highlight a few winning leveraged ETFs of last week.
ETFs in Focus
GraniteShares 1.75x Long BABA Daily ETF (BABX - Free Report) – Up 30.1%
Chinese tech giant Alibaba (BABA - Free Report) announced an important reorganization to split its company into six business groups. The company said that it seeks to “unlock shareholder value” with this move, as quoted on CNBC. Alibaba stocks jumped by more than 14% in the United States on Mar 28, following the news of restructuring (read: Alibaba Shares Surge on Restructuring News: ETFs in Focus).
MicroSectors U.S. Big Oil Index 3X Leveraged ETN (NRGU - Free Report) – Up 21.5%
The likelihood of a less-hawkish Fed and ECB amid the banking crisis should improve the energy demand scenario. Meanwhile, the banking crisis in the United States and Europe has been well-managed. China has also reopened its economy this year. Hence, we can expect an uptick in industrials activities and oil demand. Moreover, the OPEC+ plus has also announced an output cut lately.
Travel stocks recorded a rally on hopes lower Fed rate hikes. MicroSectors Travel 3x Leveraged ETN offers three times exposure to the performance of the MerQube MicroSectors U.S. Travel Index.
Direxion Daily Electric and Autonomous Vehicles Bull 2X Shares (EVAV - Free Report) – Up 17.4%
In 2022, EVs made up about 10% of total auto sales globally. This figure was much higher at 19% in China – the world’s largest EV market. The winning trend has been continuing in this year too. This is especially true given that the electric vehicle behemoth Tesla has cut prices recently to boost sales.
The underlying Indxx US Electric and Autonomous Vehicles Index track the performance of electric and autonomous vehicles companies.
Along with travel stocks, consumer discretionary stocks too surged last week. The underlying Consumer Discretionary Select Sector Index includes domestic companies from the consumer discretionary sector which includes the following industries: media; retail; hotels, restaurants & leisure; textiles, apparel & luxury goods; household durables; automobiles; automobile components; distributors; leisure equipment & products; and diversified consumer services.
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Best Leveraged ETFs of Last Week
Last week was upbeat for Wall Street as inflation showed signs of cooling. This along with recent regional banking crisis should lead the Fed to opt for a go-slow approach in the monetary tightening policy. The S&P 500 (up 3.5%), the Dow Jones (up 3.2%), the Nasdaq (up 3.4%) and the Russell 2000 (up 3.9%) – all offered solid gains last week.
The personal consumption expenditure price index in the United States increased 0.3% sequentially in February 2023, easing from a 0.6% rise in January. Among other economic data that released last week was GDP data for the fourth quarter. The data revealed a slight decrease in Q4 GDP to 2.6% from 2.7%, while jobless claims rose 7K to 198K in a sign that the labor market remains strong for now despite rising layoffs.
As long as the U.S. treasury yields are concerned, 10-year U.S. treasury yield ended the week at 3.48% while it was 3.53% at the start of the week. Against this backdrop, below we highlight a few winning leveraged ETFs of last week.
ETFs in Focus
GraniteShares 1.75x Long BABA Daily ETF (BABX - Free Report) – Up 30.1%
Chinese tech giant Alibaba (BABA - Free Report) announced an important reorganization to split its company into six business groups. The company said that it seeks to “unlock shareholder value” with this move, as quoted on CNBC. Alibaba stocks jumped by more than 14% in the United States on Mar 28, following the news of restructuring (read: Alibaba Shares Surge on Restructuring News: ETFs in Focus).
MicroSectors U.S. Big Oil Index 3X Leveraged ETN (NRGU - Free Report) – Up 21.5%
The likelihood of a less-hawkish Fed and ECB amid the banking crisis should improve the energy demand scenario. Meanwhile, the banking crisis in the United States and Europe has been well-managed. China has also reopened its economy this year. Hence, we can expect an uptick in industrials activities and oil demand. Moreover, the OPEC+ plus has also announced an output cut lately.
MicroSectors Travel 3x Leveraged ETN (FLYU - Free Report) – Up 20.6%
Travel stocks recorded a rally on hopes lower Fed rate hikes. MicroSectors Travel 3x Leveraged ETN offers three times exposure to the performance of the MerQube MicroSectors U.S. Travel Index.
Direxion Daily Electric and Autonomous Vehicles Bull 2X Shares (EVAV - Free Report) – Up 17.4%
In 2022, EVs made up about 10% of total auto sales globally. This figure was much higher at 19% in China – the world’s largest EV market. The winning trend has been continuing in this year too. This is especially true given that the electric vehicle behemoth Tesla has cut prices recently to boost sales.
The underlying Indxx US Electric and Autonomous Vehicles Index track the performance of electric and autonomous vehicles companies.
Direxion Daily Consumer Discretionary Bull 3X Shares (WANT - Free Report) – Up 16.9%
Along with travel stocks, consumer discretionary stocks too surged last week. The underlying Consumer Discretionary Select Sector Index includes domestic companies from the consumer discretionary sector which includes the following industries: media; retail; hotels, restaurants & leisure; textiles, apparel & luxury goods; household durables; automobiles; automobile components; distributors; leisure equipment & products; and diversified consumer services.