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Wall Street was upbeat last week, with the S&P 500, the Dow Jones and the Nasdaq Composite gaining more than 2.4%, 2.3% and 3.3%, respectively. The rally was mainly driven by moderating U.S. inflation, which lessened the chances of steep Fed rate hikes from here.
Moreover, U.S. recessionary fears are ebbing. The S&P 500 also reclaimed its 4,500 mark after 15 months. Against this backdrop, below we highlight a few best-performing inverse/leveraged ETFs of last week.
ETFs in Focus
GraniteShares 1.5x Long Coinbase Daily ETF (CONL - Free Report) – Up 51.8%
Coinbase’s arguments in its legal case against the U.S. Securities and Exchange Commission strengthened after a key court ruling went partially in favor of cryptocurrency firm Ripple, the U.S. exchange’s legal chief told CNBC on Friday. Moreover, the overall environment for cryptocurrency investing has been bullish in recent times as several issuers have been trying to launch bitcoin ETFs.
Notably, a U.S. judge ruled that XRP token purchases via exchanges were not securities transactions. The SEC prosecuted Ripple, the company behind the XRP token, in 2020, alleging that the company broke securities laws.
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 sector jumped on the housing market rebound. A limited housing supply, uptick in sales, could increase demand for home construction, thereby boosting the space (read: 7 ETF Areas to Gain from a Rebounding Housing Market).
Invesco DB US Dollar Index Bullish Fund (UUP - Free Report) has lost 1.9% last week due to falling inflation as well as chances of further Fed rate hikes. As the greenback fell, gold prices jumped as evident from the 1.5% uptick in the SPDR Gold Shares (GLD). As a result, gold mining stocks and ETF surged last week, because mining stocks often act as leveraged plays of the underlying metal (read: 5 Leveraged ETFs That Gained More Than 45% in Second Quarter).
The ARK Innovation ETF is an actively managed exchange traded fund that seeks long-term growth of capital by investing under normal circumstances primarily in domestic and foreign equity securities of companies that are relevant to the investment theme of disruptive innovation similar to ARK Innovation ETF. As chances of higher rates fell following a dip in inflation, high-growth ETFs like TARK surged.
Direxion MSCI Daily South Korea Bull 3X Shares (KORU - Free Report) – Up 19.6%
The KOSPI increased 392 points or 17.52% since the beginning of 2023. South Korean stocks continued this winning momentum last week on optimism over eased June U.S. inflation. South Korea’s IPO market is also charged-up. The local IPO market, weighed on by lukewarm demand in the second half of the last year, has bounced back with small- and mid-sized firms. This year, the firms preparing for market debut from a variety of industries including smart factory solutions, communication equipment, cybersecurity and cosmetics.
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5 Best Inverse/Leveraged ETFs of Last Week
Wall Street was upbeat last week, with the S&P 500, the Dow Jones and the Nasdaq Composite gaining more than 2.4%, 2.3% and 3.3%, respectively. The rally was mainly driven by moderating U.S. inflation, which lessened the chances of steep Fed rate hikes from here.
Moreover, U.S. recessionary fears are ebbing. The S&P 500 also reclaimed its 4,500 mark after 15 months. Against this backdrop, below we highlight a few best-performing inverse/leveraged ETFs of last week.
ETFs in Focus
GraniteShares 1.5x Long Coinbase Daily ETF (CONL - Free Report) – Up 51.8%
Coinbase’s arguments in its legal case against the U.S. Securities and Exchange Commission strengthened after a key court ruling went partially in favor of cryptocurrency firm Ripple, the U.S. exchange’s legal chief told CNBC on Friday. Moreover, the overall environment for cryptocurrency investing has been bullish in recent times as several issuers have been trying to launch bitcoin ETFs.
Notably, a U.S. judge ruled that XRP token purchases via exchanges were not securities transactions. The SEC prosecuted Ripple, the company behind the XRP token, in 2020, alleging that the company broke securities laws.
Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL - Free Report) – Up 27.0%
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 sector jumped on the housing market rebound. A limited housing supply, uptick in sales, could increase demand for home construction, thereby boosting the space (read: 7 ETF Areas to Gain from a Rebounding Housing Market).
MicroSectors Gold Miners 3X Leveraged ETN (GDXU - Free Report) – Up 26.9%
Invesco DB US Dollar Index Bullish Fund (UUP - Free Report) has lost 1.9% last week due to falling inflation as well as chances of further Fed rate hikes. As the greenback fell, gold prices jumped as evident from the 1.5% uptick in the SPDR Gold Shares (GLD). As a result, gold mining stocks and ETF surged last week, because mining stocks often act as leveraged plays of the underlying metal (read: 5 Leveraged ETFs That Gained More Than 45% in Second Quarter).
AXS 2X Innovation ETF (TARK - Free Report) – Up 23.1%
The ARK Innovation ETF is an actively managed exchange traded fund that seeks long-term growth of capital by investing under normal circumstances primarily in domestic and foreign equity securities of companies that are relevant to the investment theme of disruptive innovation similar to ARK Innovation ETF. As chances of higher rates fell following a dip in inflation, high-growth ETFs like TARK surged.
Direxion MSCI Daily South Korea Bull 3X Shares (KORU - Free Report) – Up 19.6%
The KOSPI increased 392 points or 17.52% since the beginning of 2023. South Korean stocks continued this winning momentum last week on optimism over eased June U.S. inflation. South Korea’s IPO market is also charged-up. The local IPO market, weighed on by lukewarm demand in the second half of the last year, has bounced back with small- and mid-sized firms. This year, the firms preparing for market debut from a variety of industries including smart factory solutions, communication equipment, cybersecurity and cosmetics.