We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights AdvisorShares MSOS 2x Daily ETF, ProShares Ultra Semiconductors, BMO REX MicroSectors FANG+ Index 3X Leveraged ETN, Direxion Daily Pharmaceutical & Medical Bull 3X Shares and Direxion Daily Semiconductor Bull 3x Shar
Read MoreHide Full Article
For Immediate Release
Chicago, IL – February 21, 2024 – Zacks.com announces the list of ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks and ETFs recently featured in the blog include: AdvisorShares MSOS 2x Daily ETF (MSOX - Free Report) , ProShares Ultra Semiconductors (USD - Free Report) , BMO REX MicroSectors FANG+ Index 3X Leveraged ETN (FNGU - Free Report) , Direxion Daily Pharmaceutical & Medical Bull 3X Shares (PILL - Free Report) and Direxion Daily Semiconductor Bull 3x Shares (SOXL - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Best Leveraged ETFs of the 1st Half of Q1
After a weak start to 2024, Wall Street regained momentum, driven by a solid earnings season, a resilient economy and a technology surge. The strong performances have resulted in increased demand for leveraged ETFs as investors seek to register big gains in a short span.
Here, we highlight a bunch of the best-performing leveraged equity ETFs from different corners of the market that are leaders in their segments. These funds will continue to be investors’ darlings, at least in the near term, provided the sentiments remain bullish.
Total fourth-quarter earnings of the 387 S&P 500 members who have reported results so far increased 5.1% from the prior-year period on 3.4% higher revenues. Of the companies that reported results, 79.1% beat EPS estimates and 65.1% surpassed revenue estimates. The pace of earnings and revenue growth represents an acceleration from the last couple of quarters, with the technology sector being a major contributor to this improving trend. Notably, the earnings growth is the best growth rate for the S&P 500 companies since the 6.5% earnings growth rate in the first quarter of 2022.
The resilience of the U.S. economy has played a crucial role in the rise of the stock market but reduced the likelihood of a near-term rate cut. Factors like robust retail sales, consumer sentiment and a cooling trend in the producer price index indicate the possibility of the Fed achieving a soft landing, bringing inflation back to target without triggering a recession. This economic resilience, coupled with surging shares of big technology companies and optimism over artificial intelligence, has been a significant driver of the market's upward trajectory.
Leveraged ETFs
Leveraged ETFs provide multiple exposures (2X or 3X) to the daily performance of the underlying index. These funds employ various investment strategies, such as the use of swaps, futures contracts and other derivative instruments to accomplish their objectives. Due to their compounding effect, investors can enjoy higher returns in a short period, provided the trend remains a friend.
Since most of these ETFs seek to attain their goals on a daily basis, their performances could vary significantly from the performance of their underlying index or benchmark over a longer period compared with a shorter period (such as weeks, months or years) due to their compounding effect (see: all Leveraged Equity ETFs here).
Investors should also note that leveraged ETFs involve more risk than traditional funds. They are often more costly and can be less tax-efficient, as they can see capital gains through the use of swaps and other derivative instruments.
AdvisorShares MSOS 2x Daily ETF – Up 48.1%
AdvisorShares MSOS 2x Daily ETF is designed for sophisticated investors looking to gain magnified exposure to the U.S. cannabis sector. It offers daily investment results that correspond to two times the daily performance of the AdvisorShares Pure US Cannabis ETF. AdvisorShares MSOS 2x Daily ETF has accumulated $80.9 million in its asset base. It charges 1.13% in annual fees (read: Cannabis ETFs Outperform in January).
ProShares Ultra Semiconductors – Up 42.7%
ProShares Ultra Semiconductors offers two times exposure to the daily performance of the Dow Jones U.S. Semiconductors Index. It has gathered $553.7 million in its asset base and charges 95 bps in fees per year from investors.
BMO REX MicroSectors FANG+ Index 3X Leveraged ETN – Up 36.1%
BMO REX MicroSectors FANG+ Index 3X Leveraged ETN seeks to offer three times leveraged exposure to the NYSE FANG Index. The Index includes 10 highly liquid stocks that represent industry leaders across today’s tech and internet/media companies. BMO REX MicroSectors FANG+ Index 3X Leveraged ETN charges 95 bps in annual fees. It has accumulated $4.2 billion in its asset base.
Direxion Daily Pharmaceutical & Medical Bull 3X Shares – Up 23.3%
Direxion Daily Pharmaceutical & Medical Bull 3X Shares targets the pharma corner of the broad healthcare sector and seeks to deliver three times the daily performance of the S&P Pharmaceuticals Select Industry Index. It has managed $16.3 million in AUM and charges 95 bps in annual fees.
Direxion Daily Semiconductor Bull 3x Shares – Up 86.9%
Direxion Daily Semiconductor Bull 3x Shares targets the semiconductor corner of the technology sector with three times leveraged exposure to the NYSE Semiconductor Index. Direxion Daily Semiconductor Bull 3x Shares has amassed about $8.9 billion in its asset base, while charging 89 bps in fees per year (read: Semiconductor ETFs Look Well Poised Post Q4 Earnings).
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
The Zacks Analyst Blog Highlights AdvisorShares MSOS 2x Daily ETF, ProShares Ultra Semiconductors, BMO REX MicroSectors FANG+ Index 3X Leveraged ETN, Direxion Daily Pharmaceutical & Medical Bull 3X Shares and Direxion Daily Semiconductor Bull 3x Shar
For Immediate Release
Chicago, IL – February 21, 2024 – Zacks.com announces the list of ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks and ETFs recently featured in the blog include: AdvisorShares MSOS 2x Daily ETF (MSOX - Free Report) , ProShares Ultra Semiconductors (USD - Free Report) , BMO REX MicroSectors FANG+ Index 3X Leveraged ETN (FNGU - Free Report) , Direxion Daily Pharmaceutical & Medical Bull 3X Shares (PILL - Free Report) and Direxion Daily Semiconductor Bull 3x Shares (SOXL - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Best Leveraged ETFs of the 1st Half of Q1
After a weak start to 2024, Wall Street regained momentum, driven by a solid earnings season, a resilient economy and a technology surge. The strong performances have resulted in increased demand for leveraged ETFs as investors seek to register big gains in a short span.
Here, we highlight a bunch of the best-performing leveraged equity ETFs from different corners of the market that are leaders in their segments. These funds will continue to be investors’ darlings, at least in the near term, provided the sentiments remain bullish.
Total fourth-quarter earnings of the 387 S&P 500 members who have reported results so far increased 5.1% from the prior-year period on 3.4% higher revenues. Of the companies that reported results, 79.1% beat EPS estimates and 65.1% surpassed revenue estimates. The pace of earnings and revenue growth represents an acceleration from the last couple of quarters, with the technology sector being a major contributor to this improving trend. Notably, the earnings growth is the best growth rate for the S&P 500 companies since the 6.5% earnings growth rate in the first quarter of 2022.
The resilience of the U.S. economy has played a crucial role in the rise of the stock market but reduced the likelihood of a near-term rate cut. Factors like robust retail sales, consumer sentiment and a cooling trend in the producer price index indicate the possibility of the Fed achieving a soft landing, bringing inflation back to target without triggering a recession. This economic resilience, coupled with surging shares of big technology companies and optimism over artificial intelligence, has been a significant driver of the market's upward trajectory.
Leveraged ETFs
Leveraged ETFs provide multiple exposures (2X or 3X) to the daily performance of the underlying index. These funds employ various investment strategies, such as the use of swaps, futures contracts and other derivative instruments to accomplish their objectives. Due to their compounding effect, investors can enjoy higher returns in a short period, provided the trend remains a friend.
Since most of these ETFs seek to attain their goals on a daily basis, their performances could vary significantly from the performance of their underlying index or benchmark over a longer period compared with a shorter period (such as weeks, months or years) due to their compounding effect (see: all Leveraged Equity ETFs here).
Investors should also note that leveraged ETFs involve more risk than traditional funds. They are often more costly and can be less tax-efficient, as they can see capital gains through the use of swaps and other derivative instruments.
AdvisorShares MSOS 2x Daily ETF – Up 48.1%
AdvisorShares MSOS 2x Daily ETF is designed for sophisticated investors looking to gain magnified exposure to the U.S. cannabis sector. It offers daily investment results that correspond to two times the daily performance of the AdvisorShares Pure US Cannabis ETF. AdvisorShares MSOS 2x Daily ETF has accumulated $80.9 million in its asset base. It charges 1.13% in annual fees (read: Cannabis ETFs Outperform in January).
ProShares Ultra Semiconductors – Up 42.7%
ProShares Ultra Semiconductors offers two times exposure to the daily performance of the Dow Jones U.S. Semiconductors Index. It has gathered $553.7 million in its asset base and charges 95 bps in fees per year from investors.
BMO REX MicroSectors FANG+ Index 3X Leveraged ETN – Up 36.1%
BMO REX MicroSectors FANG+ Index 3X Leveraged ETN seeks to offer three times leveraged exposure to the NYSE FANG Index. The Index includes 10 highly liquid stocks that represent industry leaders across today’s tech and internet/media companies. BMO REX MicroSectors FANG+ Index 3X Leveraged ETN charges 95 bps in annual fees. It has accumulated $4.2 billion in its asset base.
Direxion Daily Pharmaceutical & Medical Bull 3X Shares – Up 23.3%
Direxion Daily Pharmaceutical & Medical Bull 3X Shares targets the pharma corner of the broad healthcare sector and seeks to deliver three times the daily performance of the S&P Pharmaceuticals Select Industry Index. It has managed $16.3 million in AUM and charges 95 bps in annual fees.
Direxion Daily Semiconductor Bull 3x Shares – Up 86.9%
Direxion Daily Semiconductor Bull 3x Shares targets the semiconductor corner of the technology sector with three times leveraged exposure to the NYSE Semiconductor Index. Direxion Daily Semiconductor Bull 3x Shares has amassed about $8.9 billion in its asset base, while charging 89 bps in fees per year (read: Semiconductor ETFs Look Well Poised Post Q4 Earnings).
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.