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Wall Street was moderate last week with the S&P 500 (up 2.5%), the Dow Jones (up 0.9%) and the Nasdaq (up 3.4%) offering decent performances. While upbeat U.S. jobs reports and positive data from the early trial of COVID-19 vaccines by Pfizer-BionTech were the highlights of the week, rising virus cases and the resultant murky U.S. economic outlook acted as dampeners.
Against this backdrop, below we highlight the top-performing leveraged ETF areas of last week.
Natural Gas
Natural gas prices soared last week on reports of a weaker inventory build. Stronger-than-expected U.S. jobs data also helped boost natural gas prices as it boosted the demand outlook. Natural gas in storage was 3,077 Bcf as of Friday, Jun 26, 2020, according to the Energy Information Administration. This marked a net increase of 65 Bcf from the previous week, falling shy of an expectation of a 75 Bcf build according to survey provider Estimize.
VelocityShares 3x Long Natural Gas ETN Linked to the S&P GSCI Natural Gas Index ER (up 32.1%) and ProShares Ultra Bloomberg Natural Gas (BOIL - Free Report) (up 20.4%) were the winners last week.
FANG+ & Communications
The tech and communication sector is a coronavirus winner. Social distancing triggered by the coronavirus outbreak has benefited communications and activities over Internet in recent months. Top mutual funds continue to invest heavily in the tech sector, per Investor’s Business Daily. Amazon.com (AMZN) led all FANG stocks, amassing an estimated $815 million from 24 leading funds in the latest reporting period. Facebook (FB) ($359 million from 18 funds), Google parent Alphabet (GOOGL) ($246 million, 18 funds) and Netflix (NFLX) ($65 million, 15 funds) also raked in solid investments, per the source.
MicroSectors FANG+ Index 3X Leveraged ETN FNGU) (up 23.1%), Direxion Daily Communication Services Index Bull 3X Shares (up 16.1%) and MicroSectors FANG+ Index 2X Leveraged ETN (FNGO - Free Report) (up 15.5%) gained the most in this segment.
Retail
Retail sales in the United States surged 17.7% sequentially in May, breezing past the forecast of an 8% jump and after a record 14.7% slump in April. This marked the biggest uptick on record in retail sales as the coronavirus-led lockdown eased. Moreover, the U.S. jobs market continued to gain strength in June.
The U.S. economy added 4.8 million jobs in June, breezing past economists’ expectations of job gains of 2.9 million. Jobs growth marked a solid jump from 2.7 million in May. In June, retail employment gained by 740,000, following a gain of 372,000 in May.
Considerable job gains occurred in clothing and clothing accessories stores (+202,000), general merchandise stores (+108,000), and furniture and home furnishings stores (+84,000). No wonder,Direxion Daily Retail Bull 3X Shares (RETL - Free Report) added 16.5% in the week.
Real Estate
This sector could be a winner of low benchmark Treasury yield as well as signs of economic recovery. If the economy recovers, tenants’ ability to pay rents on time and regularly would go up. And low yield is beneficial for this rate-sensitive sector. Direxion Daily MSCI Real Estate Bull 3X Shares (DRN - Free Report) advanced 15.3% last week.
Utilities
This is yet another beneficiary of low rates. Investors should note that utilities is a non-cyclical sector and performs well in an edgy investment backdrop. Since the U.S. economic outlook is still worrisome, the fund Direxion Daily Utilities Bull 3X Shares (UTSL - Free Report) jumped 15.1% last week.
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5 Best Leveraged ETF Areas of Last Week
Wall Street was moderate last week with the S&P 500 (up 2.5%), the Dow Jones (up 0.9%) and the Nasdaq (up 3.4%) offering decent performances. While upbeat U.S. jobs reports and positive data from the early trial of COVID-19 vaccines by Pfizer-BionTech were the highlights of the week, rising virus cases and the resultant murky U.S. economic outlook acted as dampeners.
Against this backdrop, below we highlight the top-performing leveraged ETF areas of last week.
Natural Gas
Natural gas prices soared last week on reports of a weaker inventory build. Stronger-than-expected U.S. jobs data also helped boost natural gas prices as it boosted the demand outlook. Natural gas in storage was 3,077 Bcf as of Friday, Jun 26, 2020, according to the Energy Information Administration. This marked a net increase of 65 Bcf from the previous week, falling shy of an expectation of a 75 Bcf build according to survey provider Estimize.
VelocityShares 3x Long Natural Gas ETN Linked to the S&P GSCI Natural Gas Index ER (up 32.1%) and ProShares Ultra Bloomberg Natural Gas (BOIL - Free Report) (up 20.4%) were the winners last week.
FANG+ & Communications
The tech and communication sector is a coronavirus winner. Social distancing triggered by the coronavirus outbreak has benefited communications and activities over Internet in recent months. Top mutual funds continue to invest heavily in the tech sector, per Investor’s Business Daily. Amazon.com (AMZN) led all FANG stocks, amassing an estimated $815 million from 24 leading funds in the latest reporting period. Facebook (FB) ($359 million from 18 funds), Google parent Alphabet (GOOGL) ($246 million, 18 funds) and Netflix (NFLX) ($65 million, 15 funds) also raked in solid investments, per the source.
MicroSectors FANG+ Index 3X Leveraged ETN FNGU) (up 23.1%), Direxion Daily Communication Services Index Bull 3X Shares (up 16.1%) and MicroSectors FANG+ Index 2X Leveraged ETN (FNGO - Free Report) (up 15.5%) gained the most in this segment.
Retail
Retail sales in the United States surged 17.7% sequentially in May, breezing past the forecast of an 8% jump and after a record 14.7% slump in April. This marked the biggest uptick on record in retail sales as the coronavirus-led lockdown eased. Moreover, the U.S. jobs market continued to gain strength in June.
The U.S. economy added 4.8 million jobs in June, breezing past economists’ expectations of job gains of 2.9 million. Jobs growth marked a solid jump from 2.7 million in May. In June, retail employment gained by 740,000, following a gain of 372,000 in May.
Considerable job gains occurred in clothing and clothing accessories stores (+202,000), general merchandise stores (+108,000), and furniture and home furnishings stores (+84,000). No wonder,Direxion Daily Retail Bull 3X Shares (RETL - Free Report) added 16.5% in the week.
Real Estate
This sector could be a winner of low benchmark Treasury yield as well as signs of economic recovery. If the economy recovers, tenants’ ability to pay rents on time and regularly would go up. And low yield is beneficial for this rate-sensitive sector. Direxion Daily MSCI Real Estate Bull 3X Shares (DRN - Free Report) advanced 15.3% last week.
Utilities
This is yet another beneficiary of low rates. Investors should note that utilities is a non-cyclical sector and performs well in an edgy investment backdrop. Since the U.S. economic outlook is still worrisome, the fund Direxion Daily Utilities Bull 3X Shares (UTSL - Free Report) jumped 15.1% last week.
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 >>