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 154 ETFs traded in the U.S. markets, Leveraged ETFs gather total assets under management of $34.37B. The average expense ratio is 1.16%. Leveraged ETFs can be found in the following asset classes:

  • Fixed Income
  • Equity
  • Currency
  • Commodities
  • Asset Allocation
  • Alternatives

The largest Leveraged ETF is the ProShares UltraPro QQQ TQQQ with $3.68B in assets. In the last trailing year, the best performing Leveraged ETF was the UWT at 197.58%. The most-recent ETF launched in the Leveraged space was the Virtus InfraCap U.S. Preferred Stock ETF PFFA in 05/15/18.

TOP ETF PERFORMERS

MEXXDirexion Daily MSCI Mexico Bull 3X Shares44.66%
UTSLDirexion Daily Utilities Bull 3X Shares22.85%
USOUUnited States 3x Oil Fund20.30%
UBIOProShares UltraPro Nasdaq Biotechnology19.95%
UWTVelocityShares 3x Long Crude Oil ETN18.59%

BOTTOM ETF PERFORMERS

KORUDirexion Daily MSCI South Korea Bull 3X Shares-27.42%
YINNDirexion Daily FTSE China Bull 3X Shares-26.74%
BDDDB Base Metals Double Long ETN-26.11%
CHAUDirexion Daily CSI 300 China A Share Bull 2X Shares-22.80%
DAGDB Agriculture Double Long ETN-20.50%

top creations

FFEUBarclays ETN+ FI Enhanced Europe 50 ETN Series C208.20
NUGTDirexion Daily Gold Miners Index Bull 3x Shares189.37
BRZUDirexion Daily MSCI Brazil Bull 3X Shares118.55
JNUGDirexion Daily Junior Gold Miners Index Bull 3X Shares93.69
USLVVelocityShares 3X Long Silver ETN73.56

top redemptions

FLEUBarclays ETN+ FI Enhanced Europe 50 ETN Series B-237.22
UVXYProShares Ultra VIX Short-Term Futures ETF-155.29
UPROProShares UltraPro S&P500-118.60
LABUDirexion Daily S&P Biotech Bull 3X Shares-103.69
TQQQProShares UltraPro QQQ-88.01

AUM WINNERS

USTProShares Ultra 7-10 Year Treasury67.95%
FFEUBarclays ETN+ FI Enhanced Europe 50 ETN Series C43.13%
UGAZVelocityShares 3X Long Natural Gas ETN40.99%
UBRProShares Ultra MSCI Brazil Capped29.30%
USLVVelocityShares 3X Long Silver ETN27.26%

AUM LOSERS

FLEUBarclays ETN+ FI Enhanced Europe 50 ETN Series B-81.79%
MEXXDirexion Daily MSCI Mexico Bull 3X Shares-68.78%
EETProShares Ultra MSCI Emerging Markets-35.36%
UWTVelocityShares 3x Long Crude Oil ETN-33.48%
XPPProShares Ultra FTSE China 50-30.38%

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