Technology

Best Inverse/Leveraged ETFs of Last Week

Wall Street was upbeat last week with the S&P 500 logging the biggest weekly rise since July as stocks rallied on earnings. The Dow Jones (up 1.58%) and the Nasdaq (up 2.18%) were also notable winners last week.

Oil prices staged a rally last week, with United States Oil Fund LP USO adding about 1.8%. Oil prices crossed the $80-a-barrel mark amid the ongoing global power crisis. Retail sales in the United States unexpectedly increased 0.7% sequentially in September 2021, following an upwardly revised 0.9% surge in August, beating market forecasts of a 0.2% decline, in a sign of resilience from consumers.

No wonder, stocks remained upbeat in the week. The benchmark U.S. treasury yield started the week with 1.61% while it ended the week at 1.59%. Against this backdrop, below we highlight a few inverse/leveraged ETF areas that stood tall last week.

Gold Miners

Gold bullion ETF SPDR Gold Shares GLD gained 0.9% last week amid the weakness in the greenback. If this was not enough, reflation trade was palpable across the globe with the United States and Europe drawing attention lately. Gold is historically viewed as a hedge against inflation. Rising energy prices may bring back global growth worries, which may boost the demand of safe-haven status of gold. As a result, gold mining investments gained handsomely last week (read: Will Gold Get Its Glitter Back in Q4? ETFs in Focus).

Microsectors Gold Miners 3X ETN GDXU – Up 20.8%

Junior Gold Mine Bull 2X Direxion (JNUG) – Up 14.4%

Etfmg Prime 2X Daily Junior Silver Miners ETF (SILX) – Up 13.8%

Clean Energy

With energy crisis taking center stage in the world, demand for clean energy should be higher in the coming days. Plus, clean energy stocks are relatively undervalued at the current level.  

Direxion Daily Global Clean Energy Bull 2X Shares KLNE – Up 15.8%

Cloud Computing

Cloud computing continues to be a hot investment area. It is worth knowing here that cloud computing and storage have found applications in social networking, messaging apps and streaming services. It has empowered video conferencing, gaming, e-commerce shopping, remote project collaboration, online classes, editing, etc. Cloud computing is also supporting organizations in remotely processing a lot of information, developing and running key applications and services (read: Cloud Computing ETFs Looking Great: Let's Explore).       

Ultra Nasdaq Cloud Computing ETF SKYU – Up 13.3%

Direxion Daily Cloud Computing Bull 2X Shares (CLDL) – Up 11.8%

Transportation

As economic reopening is speeding up with a massive vaccine drive and chances of the launch of more antiviral treatment, the risk-on sectors are gaining momentum. Sectors that are highly related to economic reopening benefited. Moreover, with the holiday season approaching, transportation stocks have every reason to cheer as even online deliveries will need the assistance of faster and efficient transportation.            

Transportation Bull 3X Direxion TPOR – Up 11.5%


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SPDR Gold Shares (GLD): ETF Research Reports

United States Oil ETF (USO): ETF Research Reports

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

MicroSectors Gold Miners 3X Leveraged ETNs (GDXU): ETF Research Reports

ProShares Ultra Nasdaq Cloud Computing (SKYU): ETF Research Reports

Direxion Daily Global Clean Energy Bull 2X Shares (KLNE): 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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