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5 Top-Performing Leveraged ETFs of Last Week

Wall Street was subdued last week probably because of rising COVID cases globally. Investors also started to apprehend that no stimulus measure will be announced before the U.S. election. The S&P 500, the Dow Jones and the Nasdaq Composite lost about 0.5%, 1% and 1.1%, respectively, in the past week.

Against this backdrop, below we highlight a few leveraged ETFs that bucked the losing trend last week and soared successfully.

Direxion Daily Regional Banks Bull 3X Shares DPST – Up 25.1%

Bond yields crept higher, with the 10-year yield touching a level last reached in June, as quoted on CNBC. The CNBC article indicated that strategists are expecting stimulus, now or after the election. This has boosted treasury yields.

The spread between five- and 30-year Treasuries touched nearly a four-year high. This has resulted in a steepening yield curve. This is a great scenario for regional banking stocks as these perform well in a rising rate environment.

Direxion Daily MSCI Mexico Bull 3X Shares MEXX – Up 11.0%

Mexico’s stocks gained on gradual domestic recovery. Mexican peso gained against the dollar after retail sales rose in August by 2.5% sequentially, the fourth monthly increase in a row, as consumer spending continues to recover from the coronavirus-led lockdowns. Moreover, the peso continues to be the strongest currency among emerging markets with a 6% gain in October, as Democratic presidential candidate Joe Biden continues to lead polls. Mexico’s government presented an about $14 billion infrastructure investment plan in early October. This is also acting as a huge tailwind to the market.  

Direxion Daily S&P 500 High Beta Bull 3X Shares HIBL – Up 9.1%

The fund offers 300% of the performance of the S&P 500 High Beta Index.The index selects 100 securities for inclusion in the Index from the S&P 500 Index that have had the highest sensitivity to beta over the past 12 months. Some high-beta stocks gained on stimulus hopes as both Democrats and Republicans have shown support for a second round of $1,200 checks. Some upbeat domestic economic indicators also aided the segment.  

Direxion Daily South Korea Bull 3X Shares KORU – Up 7.7%

South Korean stocks have been steady lately. The country’s exchange outperformed China’s and Japan’s in the first nine months of this year. “Retail investor support, the country’s handling of the coronavirus pandemic as well as the composition of the stock market” are the three factors that Nomura pointed out as probable reasons for the rally in South Korean stocks, as quoted on CNBC.

Direxion Daily China 3x Bull Shares YINN – Up 7.1%

The underlying FTSE China 50 Index consists of the 50 largest and most-liquid public Chinese companies currently trading on the Hong Kong Stock Exchange. China stocks have been gaining on fresh policy support and upbeat data that pointed to an economic recovery from the COVID-19-induced weakness. China’s imports increased at their fastest pace this year in September. New bank loans grew more than expected in September, fueled by a jump in corporate loans, per Reuters.

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Direxion Daily Regional Banks Bull 3X Shares (DPST): ETF Research Reports
 
Direxion Daily MSCI South Korea Bull 3x Shares (KORU): ETF Research Reports
 
Direxion Daily FTSE China Bull 3X Shares (YINN): ETF Research Reports
 
Direxion Daily MSCI Mexico Bull 3X Shares (MEXX): ETF Research Reports
 
Direxion Daily SP 500 High Beta Bull 3X Shares (HIBL): ETF Research Reports
 
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Zacks Investment Research
 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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