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Top-Performing Inverse/Leveraged ETF Areas of Last Week
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Wall Street was downbeat last week, with the S&P 500, the Dow Jones and the Nasdaq losing about 0.7%, 1.3% and 0.1%, respectively. Last week marked the fourth straight week of losses for the S&P 500. The S&P 500 dropped 4.9% in September, its worst monthly performance since December, according to FactSet data, as quoted on MarketWatch.
Let’s find out which inverse/leveraged ETF areas topped last week.
The greenback has been in solid shape. Invesco DB US Dollar Index Bullish Fund (UUP - Free Report) was up 0.4% last week. Since gold is inversely related to the U.S. dollar, gold prices slumped last week. Moreover, inflation is also falling. Since gold acts as an inflation-hedge, a falling inflation scenario went against gold prices. SPDR Gold Shares (GLD - Free Report) was off 3.5% last week. This has weighed on gold mining ETFs even more as mining stocks act as leveraged plays of the underlying metal.
Inverse/Leveraged Utilities
ProShares UltraShort Utilities (SDP - Free Report) – Up 15.5%
The benchmark U.S. treasury yield was 4.59% on Sep 29, having started the month at 4.18%. The yield hit a monthly high of 4.61% on Sep 27. Such steep rise in bond yields weighed on sectors that are rate-sensitive. Utilities is such a sector. As the sector is debt-centric and offers handsome yields, the sector ETFs underperform in a rising rate environment.
Leveraged Auto
MAX Auto Industry 3X Leveraged ETN (CARU - Free Report) – Up 10.1%
Though the autoworkers’ strike expanded against GM and Ford last week, the rally in Rivian shares helped the fund to win last week. Rivian — which takes 11.96% of the underlying index of CARU —jumped more than 19% last week. Morgan Stanley remains bullish on Rivian Automotive (RIVN), as quoted on investorplace.com. Other electric-vehicle heavyweights in the index — Tesla (up 2.8%), Lucid Group (up 8.5%), Nikola Corp (up 30.7%) — also surged last week.
Inverse/Leveraged Treasury ETFs
Direxion Daily 20+ Year Treasury Bear 3x Shares (TMV - Free Report) – Up 9.5%
ProShares UltraPro Short 20+ Year Treasury (TTT - Free Report) – Up 9.4%
As U.S. treasury yields slumped on rising rate concerns, treasury prices fell as bond yields and prices are inversely related. No wonder, inverse-leveraged treasury ETFs fell last week (read: September Turns Out as Worst Month of 2023: ETF Winners).
Leveraged Coinbase
GraniteShares 1.5x Long Coinbase Daily ETF (CONL - Free Report) – Up 8.6%
Coinbase Global’s share prices rose 7.4% last week. Coinbase explored FTX Europe acquisition as it intends to broaden its overseas derivatives business. In the latest trend of continued interest in digital currencies, a significant Ethereum transaction was observed. Several Ethereum-based ETFs are likely to hit the market. Coinbase's reputation as a reliable custodian of digital assets has been boosted by its stringent safety and compliance measures. No wonder, these factors boosted the leveraged Coinbase ETF.
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Top-Performing Inverse/Leveraged ETF Areas of Last Week
Wall Street was downbeat last week, with the S&P 500, the Dow Jones and the Nasdaq losing about 0.7%, 1.3% and 0.1%, respectively. Last week marked the fourth straight week of losses for the S&P 500. The S&P 500 dropped 4.9% in September, its worst monthly performance since December, according to FactSet data, as quoted on MarketWatch.
Let’s find out which inverse/leveraged ETF areas topped last week.
Inverse/Leveraged Gold Miners
MicroSectors Gold Miners -3X Inverse Leveraged ETNs (GDXD - Free Report) – Up 21.3%
Direxion Daily Gold Miners Index Bear 2x Shares (DUST - Free Report) – Up 15.3%
MicroSectors Gold -3X Inverse Leveraged ETNs (DULL - Free Report) – Up 13.1%
The greenback has been in solid shape. Invesco DB US Dollar Index Bullish Fund (UUP - Free Report) was up 0.4% last week. Since gold is inversely related to the U.S. dollar, gold prices slumped last week. Moreover, inflation is also falling. Since gold acts as an inflation-hedge, a falling inflation scenario went against gold prices. SPDR Gold Shares (GLD - Free Report) was off 3.5% last week. This has weighed on gold mining ETFs even more as mining stocks act as leveraged plays of the underlying metal.
Inverse/Leveraged Utilities
ProShares UltraShort Utilities (SDP - Free Report) – Up 15.5%
The benchmark U.S. treasury yield was 4.59% on Sep 29, having started the month at 4.18%. The yield hit a monthly high of 4.61% on Sep 27. Such steep rise in bond yields weighed on sectors that are rate-sensitive. Utilities is such a sector. As the sector is debt-centric and offers handsome yields, the sector ETFs underperform in a rising rate environment.
Leveraged Auto
MAX Auto Industry 3X Leveraged ETN (CARU - Free Report) – Up 10.1%
Though the autoworkers’ strike expanded against GM and Ford last week, the rally in Rivian shares helped the fund to win last week. Rivian — which takes 11.96% of the underlying index of CARU —jumped more than 19% last week. Morgan Stanley remains bullish on Rivian Automotive (RIVN), as quoted on investorplace.com. Other electric-vehicle heavyweights in the index — Tesla (up 2.8%), Lucid Group (up 8.5%), Nikola Corp (up 30.7%) — also surged last week.
Inverse/Leveraged Treasury ETFs
Direxion Daily 20+ Year Treasury Bear 3x Shares (TMV - Free Report) – Up 9.5%
ProShares UltraPro Short 20+ Year Treasury (TTT - Free Report) – Up 9.4%
As U.S. treasury yields slumped on rising rate concerns, treasury prices fell as bond yields and prices are inversely related. No wonder, inverse-leveraged treasury ETFs fell last week (read: September Turns Out as Worst Month of 2023: ETF Winners).
Leveraged Coinbase
GraniteShares 1.5x Long Coinbase Daily ETF (CONL - Free Report) – Up 8.6%
Coinbase Global’s share prices rose 7.4% last week. Coinbase explored FTX Europe acquisition as it intends to broaden its overseas derivatives business. In the latest trend of continued interest in digital currencies, a significant Ethereum transaction was observed. Several Ethereum-based ETFs are likely to hit the market. Coinbase's reputation as a reliable custodian of digital assets has been boosted by its stringent safety and compliance measures. No wonder, these factors boosted the leveraged Coinbase ETF.