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 139 ETFs traded in the U.S. markets, Leveraged ETFs gather total assets under management of $35.49B. The average expense ratio is 1.09%. Leveraged ETFs can be found in the following asset classes:

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

The largest Leveraged ETF is the ProShares UltraPro QQQ TQQQ with $6.75B in assets. In the last trailing year, the best performing Leveraged ETF was the FNGU at 259.20%. The most-recent ETF launched in the Leveraged space was the ETRACS Quarterly Pay 1.5X Leveraged Wells Fargo BDC Index ETN BDCX in 06/02/20.

Top ETF Performers

FNGU MicroSectors FANG+ Index 3X Leveraged ETN 48.54%
CWEB Direxion Daily CSI China Internet Index Bull 2X Shares 44.04%
CHAU Direxion Daily CSI 300 China A Share Bull 2X Shares 42.55%
FNGO MicroSectors FANG+ Index 2X Leveraged ETN 31.68%
LABU Direxion Daily S&P Biotech Bull 3X Shares 27.50%

Bottom ETF Performers

NRGU MicroSectors U.S. Big Oil Index 3X Leveraged ETN -47.88%
DPST Direxion Daily Regional Banks Bull 3X Shares -42.53%
GUSH Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X Shares -37.61%
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares -37.30%
HIBL Direxion Daily S&P 500 High Beta Bull 3X Shares -33.96%

Top Creations

UVXY ProShares Ultra VIX Short-Term Futures ETF 470.44
FAS Direxion Daily Financial Bull 3x Shares 434.28
TNA Direxion Daily Small Cap Bull 3x Shares 289.89
GUSH Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X Shares 230.29
UDOW ProShares UltraPro Dow30 117.77

Top Redemptions

TQQQ ProShares UltraPro QQQ -361.26
UCO ProShares Ultra Bloomberg Crude Oil -246.28
LABU Direxion Daily S&P Biotech Bull 3X Shares -130.96
FBGX UBS AG FI Enhanced Large Cap Growth ETN -102.32
FLGE Credit Suisse FI Large Cap Growth Enhanced ETN -101.13

AUM Winners

UVXY ProShares Ultra VIX Short-Term Futures ETF 97.75%
BOIL ProShares Ultra Bloomberg Natural Gas 72.16%
UEUR VelocityShares Daily 4x Long EUR vs USD ETN 57.69%
FNGU MicroSectors FANG+ Index 3X Leveraged ETN 52.32%
UGL ProShares Ultra Gold 48.09%

AUM Losers

PPDM PortfolioPlus Developed Markets ETF -52.60%
BNKU MicroSectors U.S. Big Banks Index 3X Leveraged ETN -52.34%
NRGO MicroSectors U.S. Big Oil Index 2X Leveraged ETN -48.18%
PPEM PortfolioPlus Emerging Markets ETF -45.03%
SMLL Direxion Daily Small Cap Bull 2X Shares -42.93%

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