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Global stock markets delivered solid first-half returns with standout performance in Europe and emerging markets, while U.S. stocks lagged.
With the AI boom remaining a dominant investment theme, mega-cap stocks resumed their power over the past couple of months and are once again driving the global stock rally. After easing fears over Trump’s trade policies, a ceasefire between Israel and Iran boosted investors’ sentiment.
We have highlighted a bunch of the best-performing leveraged equity ETFs from different corners of the market that are at the forefront of the market rally so far. These include MicroSectors Gold Miners 3X Leveraged ETN (GDXU - Free Report) , Direxion MSCI Daily South Korea Bull 3X Shares (KORU - Free Report) , Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN - Free Report) , Direxion Daily MSCI Mexico Bull 3X Shares (MEXX - Free Report) and Direxion Daily FTSE Europe Bull 3x Shares (EURL - Free Report) .
These funds seek to register big gains in a short span and will continue their strong trend, at least in the near term, provided the sentiments remain bullish. Leveraged ETFs provide multiple exposures (2X or 3X) to the daily performance of the underlying index. These funds employ various investment strategies, such as swaps, futures contracts and other derivative instruments, to accomplish their objectives.
International Shines
A weakening U.S. dollar has boosted the value of international equities, making them more attractive to global investors. This has particularly benefited emerging market stocks and multinational corporations, improving earnings translation and trade competitiveness. In particular, South Korean stocks jumped to the 3,000 mark for the first time since January 2022 last week, driven by government-led market reforms & fiscal stimulus, and strong foreign and institutional inflows.
The first half of 2025 was marked by heightened volatility and uncertainty for the U.S. stock market, largely due to the new administration’s trade policies and geopolitical flare-ups. The S&P 500 hit a record high on Feb. 19, before plunging close to bear market territory by April 8. However, stocks have shown a strong rebound in recent months and are currently hovering near all-time highs. Strong tech-led earnings, easing inflation and steady consumer metrics have underpinned the rally.
Lingering Concerns
The global markets are still grappling with uncertainty surrounding Trump’s trade policies and the outlook for U.S. interest rates.
MicroSectors Gold Miners 3X Leveraged ETN seeks to deliver three times (3X or 300%) the performance of the S-Network MicroSectors Gold Miners Index. It has amassed $631.4 million in its asset base and charges 95 bps in annual fees. MicroSectors Gold Miners 3X Leveraged ETN trades in an average daily volume of 604,000 shares (read: Gold ETFs Shine in 1H: Will the Bloom Continue in 2H?).
Direxion MSCI Daily South Korea Bull 3X Shares (KORU - Free Report) – Up 114.3%
Direxion MSCI Daily South Korea Bull 3X Shares offers 3x leveraged exposure to the South Korean equity market by tracking the MSCI Korea 25/50 Index. It charges an annual fee of 95 bps and trades in a light average daily volume of about 285,000 shares. The fund has accumulated AUM of $137.4 million.
Direxion Daily Aerospace & Defense Bull 3X Shares creates a three times leveraged long position in the Dow Jones U.S. Select Aerospace & Defense Index. It charges an annual fee of 92 bps and trades in a good average daily volume of about 275,000 shares. Direxion Daily Aerospace & Defense Bull 3X Shares has AUM of $256 million (read: Defense ETFs Soar Amid Rising Global Tensions).
Direxion Daily MSCI Mexico Bull 3X Shares creates a three-times long position in the MSCI Mexico IMI 25/50 Index, charging 95 bps in annual fees. It has an AUM of $19.8 million and trades in an average daily volume of 91,000 shares.
Direxion Daily FTSE Europe Bull 3x Shares (EURL - Free Report) – Up 57.5%
Direxion Daily FTSE Europe Bull 3x Shares seeks to deliver three times the performance of the FTSE Developed Europe All Cap Index. It charges 95 bps in annual fees and trades in an average daily volume of 50,000 shares. Direxion Daily FTSE Europe Bull 3x Shares has amassed $44 million in its asset base.
Bottom Line
As a caveat, investors should note that these products are extremely volatile and suitable only for short-term traders. Additionally, the daily rebalancing, when combined with leverage, may make these products deviate significantly from the expected long-term performance figures (see: all the Leveraged Equity ETFs here).
Yet, for ETF investors who are bullish on these regions in the near term, any of the above-mentioned products can be an interesting choice. A near-term long could be intriguing for those with high risk tolerance and a belief that the trend is a friend in this corner of the investing world.
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Best Leveraged ETFs of the First Half of 2025
Global stock markets delivered solid first-half returns with standout performance in Europe and emerging markets, while U.S. stocks lagged.
With the AI boom remaining a dominant investment theme, mega-cap stocks resumed their power over the past couple of months and are once again driving the global stock rally. After easing fears over Trump’s trade policies, a ceasefire between Israel and Iran boosted investors’ sentiment.
We have highlighted a bunch of the best-performing leveraged equity ETFs from different corners of the market that are at the forefront of the market rally so far. These include MicroSectors Gold Miners 3X Leveraged ETN (GDXU - Free Report) , Direxion MSCI Daily South Korea Bull 3X Shares (KORU - Free Report) , Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN - Free Report) , Direxion Daily MSCI Mexico Bull 3X Shares (MEXX - Free Report) and Direxion Daily FTSE Europe Bull 3x Shares (EURL - Free Report) .
These funds seek to register big gains in a short span and will continue their strong trend, at least in the near term, provided the sentiments remain bullish. Leveraged ETFs provide multiple exposures (2X or 3X) to the daily performance of the underlying index. These funds employ various investment strategies, such as swaps, futures contracts and other derivative instruments, to accomplish their objectives.
International Shines
A weakening U.S. dollar has boosted the value of international equities, making them more attractive to global investors. This has particularly benefited emerging market stocks and multinational corporations, improving earnings translation and trade competitiveness. In particular, South Korean stocks jumped to the 3,000 mark for the first time since January 2022 last week, driven by government-led market reforms & fiscal stimulus, and strong foreign and institutional inflows.
The surge in European stocks has been supported by defense spending and fiscal stimulus for infrastructure & green technology (read: European ETFs Set to Gain as ECB Cuts Rate Again).
U.S. Stocks Witness a Roller-Coaster Ride
The first half of 2025 was marked by heightened volatility and uncertainty for the U.S. stock market, largely due to the new administration’s trade policies and geopolitical flare-ups. The S&P 500 hit a record high on Feb. 19, before plunging close to bear market territory by April 8. However, stocks have shown a strong rebound in recent months and are currently hovering near all-time highs. Strong tech-led earnings, easing inflation and steady consumer metrics have underpinned the rally.
Lingering Concerns
The global markets are still grappling with uncertainty surrounding Trump’s trade policies and the outlook for U.S. interest rates.
Best Leveraged ETFs
MicroSectors Gold Miners 3X Leveraged ETN (GDXU - Free Report) – Up 184.5%
MicroSectors Gold Miners 3X Leveraged ETN seeks to deliver three times (3X or 300%) the performance of the S-Network MicroSectors Gold Miners Index. It has amassed $631.4 million in its asset base and charges 95 bps in annual fees. MicroSectors Gold Miners 3X Leveraged ETN trades in an average daily volume of 604,000 shares (read: Gold ETFs Shine in 1H: Will the Bloom Continue in 2H?).
Direxion MSCI Daily South Korea Bull 3X Shares (KORU - Free Report) – Up 114.3%
Direxion MSCI Daily South Korea Bull 3X Shares offers 3x leveraged exposure to the South Korean equity market by tracking the MSCI Korea 25/50 Index. It charges an annual fee of 95 bps and trades in a light average daily volume of about 285,000 shares. The fund has accumulated AUM of $137.4 million.
Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN - Free Report) – Up 73.4%
Direxion Daily Aerospace & Defense Bull 3X Shares creates a three times leveraged long position in the Dow Jones U.S. Select Aerospace & Defense Index. It charges an annual fee of 92 bps and trades in a good average daily volume of about 275,000 shares. Direxion Daily Aerospace & Defense Bull 3X Shares has AUM of $256 million (read: Defense ETFs Soar Amid Rising Global Tensions).
Direxion Daily MSCI Mexico Bull 3X Shares (MEXX - Free Report) - Up 70.7%
Direxion Daily MSCI Mexico Bull 3X Shares creates a three-times long position in the MSCI Mexico IMI 25/50 Index, charging 95 bps in annual fees. It has an AUM of $19.8 million and trades in an average daily volume of 91,000 shares.
Direxion Daily FTSE Europe Bull 3x Shares (EURL - Free Report) – Up 57.5%
Direxion Daily FTSE Europe Bull 3x Shares seeks to deliver three times the performance of the FTSE Developed Europe All Cap Index. It charges 95 bps in annual fees and trades in an average daily volume of 50,000 shares. Direxion Daily FTSE Europe Bull 3x Shares has amassed $44 million in its asset base.
Bottom Line
As a caveat, investors should note that these products are extremely volatile and suitable only for short-term traders. Additionally, the daily rebalancing, when combined with leverage, may make these products deviate significantly from the expected long-term performance figures (see: all the Leveraged Equity ETFs here).
Yet, for ETF investors who are bullish on these regions in the near term, any of the above-mentioned products can be an interesting choice. A near-term long could be intriguing for those with high risk tolerance and a belief that the trend is a friend in this corner of the investing world.