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7 Top Leveraged ETFs of Last Week

Last week was moderately upbeat for Wall Street with SPDR S&P 500 ETF Trust SPY (up 2.2%), SPDR Dow Jones Industrial Average ETF Trust DIA (up 2.2%) and Invesco QQQ Trust QQQ (up 0.3%) returning decently and the small-cap ETF iShares Russell 2000 Index ETF IWM (up 5.1%) surging.

Vaccine hopes bolstered by Moderna’s (MRNA) successful early-stage clinical trials drove risk-on trade sentiments last week and boosted stocks and sectors that are the direct beneficiaries of economic reopening. This is the reason small-cap stocks outperformed last week (read: Vaccine Hopes Boost These Sectors & ETFs).

Meanwhile, J.P. Morgan (JPM) and Goldman Sachs (GS) have come up with upbeat earnings results, giving investors another reason to rejoice. Apple has also gained as it won the EU court case over $15 billion in claimed taxes (read: Warren Buffett Bets Big on Apple: Buy These ETFs).

However, big tech stocks put up a subdued performance and weighed on the tech-heavy Nasdaq index. Technology stocks and ETFs have been the star performers this year due to the pandemic. Social distancing norms to mitigate the spread of the virus compelled people to stay at home, binge on online shopping and work as well as learn from home.

However, after such a steep rally amid the pandemic, big tech stocks are now deemed overvalued by some investors. Moreover, stocks related to the reopening of the economy gained attention last week. Against this backdrop, below we highlight a few leveraged ETFs that were last week’s outperformers.

Investors should note that the winners are from the cyclical industries like industrials and transportation (that are the biggest beneficiaries from the successful rebooting of the U.S. economy), healthcare (as this area stands to gain from vaccine development and rollouts of treatment), rate-sensitive sectors like homebuilders, mortgage-REITs and utilities (as interest rates remain at a record low level) (read: Is 60/40 Rule Obsolete Now? 5 High-Yielding ETFs to Play).

Another winning industry – cannabis – deserves a special mention. Aphria Inc. (APHA) added about 9% past week. Notably, Stifel analyst W. Andrew Carter, rated Aphria “Buy” recently on a strong balance sheet and cash flows, as quoted on Barrons.com (read: Are Marijuana Stocks & ETFs Coronavirus-Proof?).

Direxion Daily Transportation Bull 3X Shares (TPOR) – Up 19.7%

Direxion Homebuilders & Supplies Bull 3X ETF (NAIL) – Up 19.0%

Direxion Industrials Bull 3X ETF DUSL – Up 18.2%

Direxion Daily Healthcare Bull 3X Shares CURE – Up 15.9%

Credit Suisse X-Links Monthly Pay 2xLeveraged Mortgage REIT ETN REML – Up 14.6%

Direxion Daily Utilities Bull 3X ETF UTSL – Up 13.1%

MicroSectors Cannabis 2x Leveraged ETN MJO – Up 11.6%

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SPDR SP 500 ETF (SPY): ETF Research Reports

Invesco QQQ (QQQ): ETF Research Reports

iShares Russell 2000 ETF (IWM): ETF Research Reports

SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports

Direxion Daily Homebuilders Supplies Bull 3X Shares (NAIL): ETF Research Reports

Direxion Daily Healthcare Bull 3x Shares (CURE): ETF Research Reports

Direxion Daily Transportation Bull 3X Shares (TPOR): ETF Research Reports

Direxion Daily Industrials Bull 3X Shares (DUSL): ETF Research Reports

Credit Suisse XLinks Monthly Pay 2xLeverged Mortgage REIT ETN (REML): ETF Research Reports

Direxion Daily Utilities Bull 3X Shares (UTSL): ETF Research Reports

MicroSectors Cannabis 2X Leveraged ETNs (MJO): ETF Research Reports

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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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