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4 Leveraged ETF Areas That Are Up 100% This Year

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We are on the verge of wrapping up the third quarter of 2019. Though the first quarter of the year saw a great start, thanks to easing trade tensions, markets were volatile in the May-August period on a flare-up in the same. Two Fed rate cuts so far this year — one in July and the other in September — gave a boost to global markets occasionally.

Here are four leveraged ETF areas that have gained about 100% so far this year.


Homebuilding stocks have been on a tear this year. Low mortgage rates on dovish Fed policies, slow home price growth and the release of some upbeat economic data are working in favor of the space. Rising for the second consecutive month, sales of existing homes (which account for about 90% of total home sales) in the United States increased in August to a 17-month high. Not only existing ones, new home sales increased more than expected in August. Housing starts and building permits rose to a more than 12-year high in August (read: Here's Why Homebuilding ETFs Are Soaring).

Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL - Free Report) — Up 155.0%

UBS ETRACS Monthly Reset 2xLeveraged ISE Exclusively Homebuilders ETN (HOML) – Up 132.2%

Gold Miners

Gold prices soared this year on escalating trade tensions, collapse in bond yields resulting in moderate greenback strength, global recession fears, political unrest in Hong Kong as well as a plunge in Argentina's currency. Further, a series of easy money policies around the globe strengthened the metal. Since the yellow metal does not pay interest like fixed-income assets, the appeal for it brightens when the Fed eases its policy.

Investors should also note that metal miners act as a leveraged play on the underlying metal prices and tend to experience more gains than their bullion cousins. This has boosted leveraged gold miners’ ETFs materially (read: 5 Gold Mining ETFs & Stocks Shining in August).

Direxion Daily Gold Miners Index Bull 3X Shares (NUGT– Up 116.9%

Aerospace & Defense

Aerospace and defense stocks scaled higher as President Trump is all about boosting defense spending. Rising geopolitical risks and higher commercial demand are giving a boost to defense companies. There was an attack on Saudi Arabia’s largest oilfields in Hijra Khurais and the world’s biggest crude processing facility at Abqaiq on Sep 14. Iran is being blamed by the United States for the attacks. Talks were rife that a fight between Iran and U.S. forces in the Gulf might erupt. These factors have lent support to the leveraged defense ETF (read: Saudi Oil Attack: Sector ETF Winners and Losers).

Direxion Daily Aerospace & Defense Bull 3X Shares Direxion Daily Aerospace (DFEN) — Up 106%


Despite occasional flare-ups in trade tensions in the second and third quarter of 2019, the semiconductor space kept rising on underlying strength (read: Trump May Be Re-Elected: Best ETFs in His Current Term).

Direxion Daily Semiconductor Bull 3X Shares (SOXL) — Up 103.6%

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