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 133 ETFs traded in the U.S. markets, Leveraged ETFs gather total assets under management of $37.71B. The average expense ratio is 1.08%. 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 $8.35B in assets. In the last trailing year, the best performing Leveraged ETF was the FNGU at 345.98%. 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 22.98%
FNGO MicroSectors FANG+ Index 2X Leveraged ETN 16.71%
TPOR Direxion Daily Transportation Bull 3X Shares 14.28%
INDL Direxion Daily MSCI India Bull 3X Shares 12.00%
NUGT Direxion Daily Gold Miners Index Bull 2X Shares 11.03%

Bottom ETF Performers

NRGU MicroSectors U.S. Big Oil Index 3X Leveraged ETN -44.48%
GUSH Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X Shares -36.28%
NRGO MicroSectors U.S. Big Oil Index 2X Leveraged ETN -31.40%
DIG ProShares Ultra Oil & Gas -28.06%
ERX Direxion Daily Energy Bull 2x Shares -27.75%

Top Creations

UVXY ProShares Ultra VIX Short-Term Futures ETF 285.45
AGQ ProShares Ultra Silver 111.79
JNUG Direxion Daily Junior Gold Miners Index Bull 2X Shares 70.26
NUGT Direxion Daily Gold Miners Index Bull 2X Shares 68.82
SSO ProShares Ultra S&P 500 52.43

Top Redemptions

TQQQ ProShares UltraPro QQQ -1,040.20
SPXL Direxion Daily S&P 500 Bull 3X Shares -210.75
TECL Direxion Daily Technology Bull 3X Shares -173.27
UCO ProShares Ultra Bloomberg Crude Oil -166.46
SOXL Direxion Daily Semiconductor Bull 3X Shares -108.94

AUM Winners

EET ProShares Ultra MSCI Emerging Markets 107.06%
FNGU MicroSectors FANG+ Index 3X Leveraged ETN 72.57%
TYD Direxion Daily 7-10 Year Treasury Bull 3x Shares 34.77%
DEUR VelocityShares Daily 4x Long USD vs EUR ETN 30.82%
UCHF VelocityShares Daily 4x Long CHF vs USD ETN 29.34%

AUM Losers

UBT ProShares Ultra 20+ Year Treasury -35.77%
NRGU MicroSectors U.S. Big Oil Index 3X Leveraged ETN -32.02%
NRGO MicroSectors U.S. Big Oil Index 2X Leveraged ETN -31.67%
FIHD UBS AG FI Enhanced Global High Yield ETN -27.42%
URTY ProShares UltraPro Russell2000 -26.91%

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