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Leveraged ETFs of Last Week

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Last week was mixed for Wall Street though the S&P 500, the Dow Jones and the Nasdaq lost about 2.3%, 2.4% and 1.66%, respectively. While fears of a second wave of virus contagion amid reopening of economies and Fed Chair Jerome Powell’s warning about prolonged economic weakness weighed on the markets, higher risk-on sentiments led to gains at the end of the week (read: Inverse ETFs Gain on Powell's Economic Warning).

Biotech and pharma stocks remained steady on developments in COVID-19 drugs and vaccines. Notably, last week, Novavax (NVAX - Free Report) received the largest-ever investment from Coalition for Epidemic Preparedness Innovations (CEPI), a global coalition supporting COVID-19 vaccine development. As a result, the stock gained massively and acted as the cornerstone for the entire industry. Bank stocks rose on merger speculation (read: Bank ETFs Rise on Merger Speculations).

Energy stocks also held steady last week on economic reopening and cues of pickup in activities. And the momentum in the tech sector lasted.  Against this backdrop, we highlight a few leveraged ETFs that won big time last week.

VelocityShares 3X Long Silver ETN ) – Up 25.7%

USLV is a 3x leveraged product intended for single-day bets on the silver market, not for long-term allocation. Its linked index is an "excess return" silver index, meaning USLV's returns reflect both the price changes on its futures contracts as well as any gain or loss from "rolling" those futures contracts.

Direxion Daily Junior Gold Miners Index Bull 2X Shares (JNUG - Free Report) ) – Up 12.9%

JNUG provides leveraged exposure (3x) to the Market Vectors Junior Gold Miners Index—a market-cap-weighted index of global gold mining companies that derive at least 50% of their revenue from gold or silver mining activities.

VelocityShares Daily 4x Long USD Vs GBP ETN (DGBP - Free Report)  – Up 9.7%

The product seeks to track the daily performance of the VelocityShares Daily 4X Long USD vs. GBP Index. The index is designed to provide 4 times leveraged exposure, reset daily, to changes in the spot exchange rate between the U.S. dollar and the GBP.

Direxion Daily S&P Biotech Bull (LABU - Free Report) – Up 8.5%

The fund gives 300% of the performance of the S&P Biotechnology Select Industry Index (read: 6 Leveraged ETFs Up At Least 25% Last Week).

ProShares Ultra Bloomberg Crude Oil (UCO - Free Report) – Up 7.1%

The product seeks daily investment results that correspond to two times (2x) the daily performance of the Bloomberg WTI Crude Oil Subindex.The underlying Bloomberg WTI Crude Oil Subindex is intended to reflect the crude oil segment of the commodities market. The index consists of futures contracts on crude oil only (read: Oil Price Rebound, USO ETF & More).

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