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 122 ETFs traded on the U.S. markets, Leveraged ETFs have total assets under management of $57.98B. The average expense ratio is 1.04%. 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 $11.38B in assets. In the last trailing year, the best-performing Leveraged ETF was RETL at 646.81%. The most recent ETF launched in the Leveraged space was the ETFMG 2x Daily Travel Tech ETF AWYX on 06/15/21.

Top ETF Performers

QLD ProShares Ultra QQQ 125.99%
WEBL Direxion Daily Dow Jones Internet Bull 3X Shares 31.12%
SOXL Direxion Daily Semiconductor Bull 3X Shares 29.61%
CLDL Direxion Daily Cloud Computing Bull 2X Shares 27.34%
FNGU MicroSectors FANG+ Index 3X Leveraged ETN 25.48%

Bottom ETF Performers

UVXY ProShares Ultra VIX Short-Term Futures ETF -92.90%
GDXU MicroSectors Gold Miners 3X Leveraged ETN -31.82%
NUGT Direxion Daily Gold Miners Index Bull 2X Shares -23.50%
DPST Direxion Daily Regional Banks Bull 3X Shares -22.65%
BNKU MicroSectors U.S. Big Banks Index 3X Leveraged ETN -20.64%

Top Creations

TQQQ ProShares UltraPro QQQ 829.89
SOXL Direxion Daily Semiconductor Bull 3X Shares 312.94
LABU Direxion Daily S&P Biotech Bull 3X Shares 195.04
BIB ProShares Ultra NASDAQ Biotechnology 77.94
NAIL Direxion Daily Homebuilders & Supplies Bull 3X Shares 69.67

Top Redemptions

NUGT Direxion Daily Gold Miners Index Bull 2X Shares -216.67
JNUG Direxion Daily Junior Gold Miners Index Bull 2X Shares -131.13
SSO ProShares Ultra S&P 500 -87.07
QLD ProShares Ultra QQQ -87.01
FLGE Credit Suisse FI Large Cap Growth Enhanced ETN -80.53

AUM Winners

UBT ProShares Ultra 20+ Year Treasury 49.81%
MEXX Direxion Daily MSCI Mexico Bull 3X Shares 42.27%
TMF Direxion Daily 20+ Year Treasury Bull 3X Shares 33.67%
EDC Direxion Daily MSCI Emerging Markets Bull 3x Shares 29.63%
CLDL Direxion Daily Cloud Computing Bull 2X Shares 29.39%

AUM Losers

GDXU MicroSectors Gold Miners 3X Leveraged ETN -32.31%
TPOR Direxion Daily Transportation Bull 3X Shares -22.86%
BNKU MicroSectors U.S. Big Banks Index 3X Leveraged ETN -20.77%
JNUG Direxion Daily Junior Gold Miners Index Bull 2X Shares -20.51%
NUGT Direxion Daily Gold Miners Index Bull 2X Shares -19.32%

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