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 162 ETFs traded in the U.S. markets, Leveraged ETFs gather total assets under management of $22.50B. The average expense ratio is 1.12%. Leveraged ETFs can be found in the following asset classes:

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

The largest Leveraged ETF is the UBS AG FI Enhanced Global High Yield ETN FIHD with $1.83B in assets. In the last trailing year, the best performing Leveraged ETF was the NAIL at 177.78%. The most-recent ETF launched in the Leveraged space was the Direxion Daily S&P 500 High Beta Bull 3X Shares HIBL in 11/07/19.

Top ETF Performers

LABU Direxion Daily S&P Biotech Bull 3X Shares 41.88%
UBIO ProShares UltraPro Nasdaq Biotechnology 27.05%
JNUG Direxion Daily Junior Gold Miners Index Bull 3X Shares 23.66%
PILL Direxion Daily Pharmaceutical & Medical Bull 3X Shares 22.41%
BIB ProShares Ultra NASDAQ Biotechnology 17.34%

Bottom ETF Performers

UGAZ VelocityShares 3X Long Natural Gas ETN -48.31%
BOIL ProShares Ultra Bloomberg Natural Gas -33.58%
TVIX VelocityShares Daily 2x VIX Short-Term ETN -17.30%
GUSH Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 3X Shares -14.11%
NRGU MicroSectors U.S. Big Oil Index 3X Leveraged ETN -12.18%

Top Creations

UGAZ VelocityShares 3X Long Natural Gas ETN 475.24
TVIX VelocityShares Daily 2x VIX Short-Term ETN 210.21
UVXY ProShares Ultra VIX Short-Term Futures ETF 140.87
BRZU Direxion Daily MSCI Brazil Bull 3X Shares 69.62
SSO ProShares Ultra S&P 500 68.23

Top Redemptions

TQQQ ProShares UltraPro QQQ -309.21
LABU Direxion Daily S&P Biotech Bull 3X Shares -158.54
UWT VelocityShares 3x Long Crude Oil ETN -123.87
TNA Direxion Daily Small Cap Bull 3x Shares -95.60
UPRO ProShares UltraPro S&P500 -63.59

AUM Winners

LBDC ETRACS 2xLeveraged Long Wells Fargo Business Development Company ETN Series B 455.49%
LTL ProShares Ultra Telecommunications 97.64%
HIBL Direxion Daily S&P 500 High Beta Bull 3X Shares 51.37%
WEBL Direxion Daily Dow Jones Internet Bull 3X Shares 51.03%
DUSL Direxion Daily Industrials Bull 3X Shares 43.15%

AUM Losers

DAUD VelocityShares Daily 4x Long USD vs AUD ETN -81.01%
DGBP VelocityShares Daily 4x Long USD vs GBP ETN -79.96%
DCHF VelocityShares Daily 4x Long USD vs CHF ETN -79.34%
DJPY VelocityShares Daily 4x Long USD vs JPY ETN -73.23%
UJPY VelocityShares Daily 4x Long JPY vs USD ETN -73.20%

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