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Best Inverse/Leveraged ETFs of Last Week

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The S&P 500 hit a new high for the year last week after the November jobs report and University of Michigan consumer survey data indicated a resilient economy and cooling inflation, triggering bets over a so-called soft-landing scenario.

Last week, S&P 500 added 0.2%, the Nasdaq gained 0.7%, the Dow Jones nudged up 0.01% and the Russell 2000 jumped 0.98%. With this, the S&P 500 marked the six-week winning streak.

Inside the Data Points

The latest consumer sentiment survey from the University of Michigan indicated that consumers expect inflation to sit at 3.1% in a year, a decrease from last month's expectation of 4.5%. December's reading marked the lowest since March 2021 and is slightly above the 2.3% to 3.0% range seen in the two years before the pandemic.

Expectations for long-run inflation slumped to 2.8%, down from November's 3.2%, which was the highest reading since 2011. The overall consumer sentiment index jumped 13% in December after four straight months of declines. Sentiment remained at 69.4, above November's reading of 59.8 and the highest reading since August.

The November U.S. jobs report showed continued resilience in the labor market. U.S. nonfarm payrolls grew by 199,000 last month, the Labor Department said Friday. That was more than the 190,000 jobs anticipated by economists surveyed by Dow Jones, and better than the October gain of 150,000, per CNBC.

The unemployment rate in the United States declined to 3.7% in November of 2023 from 3.9% in the previous month, marking the lowest level since July, and firmly under market expectations that it would remain unchanged at 3.9%.

Among other developments of the last week, oil price slump hogged investors’ attention. United States Oil ETF (USO - Free Report) declined 3.1% last week. Oil prices are on their longest weekly losing streak since 2018, driven by concerns about a global glut and skepticism over the OPEC+’s effectiveness in implementing deeper supply cuts (read: Inverse Energy ETFs Rise Amid Steep Decline in Oil).

Inside Winning Inverse/Leveraged ETFs of Last Week

Against this backdrop, below we highlight a few winning inverse/leveraged ETFs of last week.

MicroSectors Gold Miners -3X Inverse Leveraged ETN (GDXD - Free Report) – Up 22.9%

Gold prices fell last week as the dollar gained some strength. Moreover, profit booking in the gold also weighed on gold prices and boosted inverse-leveraged gold mining ETFs.

ProShares UltraShort Silver (ZSL - Free Report) – Up 21.9%

Silver too slumped after a spike. The ProShares UltraShort Silver seeks daily investment results, before fees and expenses, that correspond to two times the inverse (-2x) of the daily performance the Bloomberg Silver Subindex. The fund charges 95 bps in fees.

ProShares UltraShort Bloomberg Natural Gas (KOLD - Free Report) – Up 16.6%

Natural Gas prices dropped, despite soaring tensions in the Middle East. Despite risk of a proxy war in the region, Gas prices are continuing their decline.

AdvisorShares MSOS 2x Daily ETF (MSOX - Free Report) – Up 15.5%

Medical marijuana is gaining traction. New Jersey lowered cost to register for medical marijuana as interest declines. The AdvisorShares MSOS 2x Daily ETF, which is actively-managed in nature, seeks daily investment results that correspond to two times the return of AdvisorShares Pure US Cannabis ETF.

Direxion Daily FTSE China Bear 3X Shares (YANG - Free Report) – Up 15.1%

Chinese stocks have seen slowdown. China's blue-chip stocks slumped to an almost five-year low while the yuan currency extended losses. Moody's cut to China's credit outlook weighed on the markets heavily.

The Direxion Daily FTSE China Bear 3X Shares seeks daily investment results, before fees and expenses, of 300% of the inverse (or opposite) of the performance of the FTSE China 50 Index. The expense ratio of the fund is 1.08%.



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