Leveraged ETF Overview

Leveraged ETFs are powerful and complex trading instruments that allow traders to magnify the return on investment. While higher returns are an attractive proposition, investors need to realize that losses are magnified too. Thus, these ETFs need to be handled with care.

Leveraged ETFs deliver the desired returns over prespecified periods only (usually one day). A leveraged ETF that offers 2x exposure to the S&P 500 only attempts to do so over one-day holding periods. Investors looking to hold these ETFs for significantly longer time periods can often find themselves losing money even if the underlying benchmark behaved as expected.

With 143 ETFs traded in the U.S. markets, Leveraged ETFs gather total assets under management of $33.21B. The average expense ratio is of 1.11%. Leveraged ETFs can be found in the following asset classes:

  • Equity
  • Fixed Income
  • Commodities

The largest Leveraged ETF is the ProShares UltraPro QQQ TQQQ with $2.46B in assets. In the last trailing year, the best performing Leveraged ETF was the NAIL at 194.24%. The most-recent ETF launched in the Leveraged space was the VelocityShares Daily 4x Long AUD vs USD ETN UAUD in 12/12/17.

TOP ETF PERFORMERS

RETLDirexion Daily Retail Bull 3x Shares30.82%
TPORDirexion Daily Transportation Bull 3x Shares27.12%
FINUProShares UltraPro Financial Select Sector19.14%
DUSLDirexion Daily Industrials Bull 3X Shares17.11%
SMHDETRACS Monthly Pay 2xLeveraged US Small Cap High Dividend ETN15.99%

BOTTOM ETF PERFORMERS

UGAZVelocityShares 3X Long Natural Gas ETN-42.52%
UVXYProShares Ultra VIX Short-Term Futures ETF-32.24%
TVIXVelocityShares Daily 2x VIX Short-Term ETN-32.11%
BOILProShares Ultra Bloomberg Natural Gas-29.45%
USLVVelocityShares 3X Long Silver ETN-19.87%

top creations

TQQQProShares UltraPro QQQ206.58
SOXLDirexion Daily Semiconductor Bull 3x Shares158.10
UVXYProShares Ultra VIX Short-Term Futures ETF141.27
LABUDirexion Daily S&P Biotech Bull 3X Shares101.46
TVIXVelocityShares Daily 2x VIX Short-Term ETN46.86

top redemptions

UCOProShares Ultra Bloomberg Crude Oil-113.54
NUGTDirexion Daily Gold Miners Index Bull 3x Shares-92.74
UWTVelocityShares 3x Long Crude Oil ETN-82.52
UGAZVelocityShares 3X Long Natural Gas ETN-70.01
SPXLDirexion Daily S&P 500 Bull 3x Shares-28.58

AUM WINNERS

TVIZVelocityShares Daily 2x VIX Medium-Term ETN144.38%
NAILDirexion Daily Homebuilders & Supplies Bull 3X Shares137.98%
SPUUDirexion Daily S&P 500 Bull 2x Shares67.15%
UDOWProShares UltraPro Dow3065.66%
RETLDirexion Daily Retail Bull 3x Shares60.60%

AUM LOSERS

USTProShares Ultra 7-10 Year Treasury-58.70%
LBDCETRACS 2xLeveraged Long Wells Fargo Business Development Company ETN Series B-56.92%
MRRLETRACS Monthly Pay 2xLeveraged Mortgage REIT ETN Series B -54.53%
YCLProShares Ultra Yen-51.21%
URRMarket Vectors-Double Long Euro ETN-39.25%

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