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 157 ETFs traded in the U.S. markets, Leveraged ETFs gather total assets under management of $33.70B. The average expense ratio is 1.16%. Leveraged ETFs can be found in the following asset classes:

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

The largest Leveraged ETF is the ProShares UltraPro QQQ TQQQ with $3.67B in assets. In the last trailing year, the best performing Leveraged ETF was the UVXY at 209.52%. The most-recent ETF launched in the Leveraged space was the MicroSectors U.S. Big Oil Index 2X Leveraged ETN NRGO in 04/09/19.

Top ETF Performers

UGAZ VelocityShares 3X Long Natural Gas ETN 66.09%
URR Market Vectors-Double Long Euro ETN 45.51%
BOIL ProShares Ultra Bloomberg Natural Gas 35.69%
SOXL Direxion Daily Semiconductor Bull 3X Shares 28.64%
KORU Direxion Daily MSCI South Korea Bull 3X Shares 27.04%

Bottom ETF Performers

JNUG Direxion Daily Junior Gold Miners Index Bull 3X Shares -28.95%
TVIX VelocityShares Daily 2x VIX Short-Term ETN -24.51%
NUGT Direxion Daily Gold Miners Index Bull 3X Shares -18.97%
UVXY ProShares Ultra VIX Short-Term Futures ETF -18.05%
BRZU Direxion Daily MSCI Brazil Bull 3X Shares -12.61%

Top Creations

TQQQ ProShares UltraPro QQQ 252.36
BRZU Direxion Daily MSCI Brazil Bull 3X Shares 169.72
SOXL Direxion Daily Semiconductor Bull 3X Shares 130.30
TECL Direxion Daily Technology Bull 3X Shares 60.69
ERX Direxion Daily Energy Bull 3x Shares 57.82

Top Redemptions

UVXY ProShares Ultra VIX Short-Term Futures ETF -216.54
SSO ProShares Ultra S&P 500 -200.38
NUGT Direxion Daily Gold Miners Index Bull 3X Shares -161.96
TVIX VelocityShares Daily 2x VIX Short-Term ETN -132.67
JNUG Direxion Daily Junior Gold Miners Index Bull 3X Shares -82.48

AUM Winners

UST ProShares Ultra 7-10 Year Treasury 64.91%
UPW ProShares Ultra Utilities 57.83%
PILL Direxion Daily Pharmaceutical & Medical Bull 3X Shares 51.94%
TYD Direxion Daily 7-10 Year Treasury Bull 3x Shares 45.66%
UBOT Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 3X Shares 41.72%

AUM Losers

TVIX VelocityShares Daily 2x VIX Short-Term ETN -34.77%
FFEU Barclays ETN+ FI Enhanced Europe 50 ETN Series C -24.34%
FIYY Barclays ETN+ FI Enhanced Global High Yield ETN Series B -21.81%
DUSL Direxion Daily Industrials Bull 3X Shares -21.63%
USOU United States 3x Oil Fund -18.30%

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