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5 Top Leveraged ETFs of Last Week

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Last week proved to be a beneficial one  for Wall Street, backed by the bleak signs of slowing coronavirus spread in Italy, one of the hardest-hit countries, and $2 trillion worth of U.S. coronavirus stimulus bill. Fed’s support was also overwhelming with an announcement of unlimited QE and corporate bond purchase. The three key U.S. equity gauges gained 10.3%, 12.8% and 9.1% last week, respectively(read: US Stimulus Should Support These 7 ETFs).

Amid this backdrop, these leveraged ETFs gained the maximum.

Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN - Free Report) — Up 69.4%

The space rallied on encouraging Boeingnews. Per a Reuters report, Boeing plans to resume 737 MAX production by May, ending the prolonged halt following the deadly MAX jet fleet crashes. This news lifted investors’ sentiments.

The U.S. government stimulus deal “includes $17 billion in loans earmarked for companies deemed critical to national security, which is intended to assist Boeing,” though no name was mentioned, per Bloomberg.

Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL - Free Report) — Up 57.7%

U.S. homebuilding has been one of the worst-hit sectors in the month-long coronavirus-induced selloffs. However, government stimulus, stock market bounce-back and low rates have probably given a boost to housing ETFs (read: What Fed Rate Cut? 5 Reasons Why Housing ETFs Are in Trouble).

Direxion Daily Utilities Bull 3X Shares (UTSL - Free Report) — Up 52.0%

Fed stimulus brought down the benchmark treasury yield to a very low level. As of Mar 27, 2020, the yield on benchmark treasury yield was 0.72%. No wonder, this spelt good news for utilities stocks and ETFs.

Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 3X Shares (UBOT - Free Report) — Up 50.7%

The fund provides exposure to companies in developed markets that are expected to benefit from the adoption & utilization of robotics and AI. Technological advancement is the need of the hour and should be undeterred by the virus. In fact, rapid spread of virus has probably driven the necessity for technological advancement even more given the widespread work-from-home and Internet usage.

Direxion Daily Industrials Bull 3X Shares (DUSL - Free Report) – Up 43.6%

Investors should note that the stay-at-home policy hurt the industrial sector severely. However, IHS Markit indicated that its flash U.S. manufacturing Purchasing Managers Index for March declined to a reading of 49.2 from February’s 50.7. And, the data topped economists’ expectation of a reading of 45.1. The Fed’s ultra-easy monetary policy and a mammoth U.S. government stimulus may also favor industrial stocks and funds (read: Join the Wall Street Rally With Industrial ETFs).

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