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 124 ETFs traded on the U.S. markets, Leveraged ETFs have total assets under management of $61.31B. 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 $14.63B in assets. In the last trailing year, the best-performing Leveraged ETF was RETL at 320.49%. The most recent ETF launched in the Leveraged space was the MicroSectors FANG & Innovation 3x Leveraged ETN BULZ on 08/17/21.

Top ETF Performers

BOIL ProShares Ultra Bloomberg Natural Gas 91.20%
GUSH Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X Shares 23.75%
UBOT Direxion Daily Robotics, Artificial Intelligence, & Automation Index Bull 2X Shares 21.55%
EZJ ProShares Ultra MSCI Japan 16.30%
INDL Direxion Daily MSCI India Bull 2X Shares 16.13%

Bottom ETF Performers

MJXL ETFMG 2x Daily Alternative Harvest ETF -19.40%
PILL Direxion Daily Pharmaceutical & Medical Bull 3X Shares -16.33%
NAIL Direxion Daily Homebuilders & Supplies Bull 3X Shares -15.66%
BRZU Direxion Daily MSCI Brazil Bull 2X Shares -12.84%
UBR ProShares Ultra MSCI Brazil Capped -12.54%

Top Creations

UVXY ProShares Ultra VIX Short-Term Futures ETF 407.56
SSO ProShares Ultra S&P 500 144.56
UDOW ProShares UltraPro Dow30 118.73
UYG ProShares Ultra Financials 107.54
CWEB Direxion Daily CSI China Internet Index Bull 2X Shares 85.98

Top Redemptions

SOXL Direxion Daily Semiconductor Bull 3X Shares -537.56
FAS Direxion Daily Financial Bull 3x Shares -467.03
TQQQ ProShares UltraPro QQQ -454.42
UWM ProShares Ultra Russell2000 -447.40
TNA Direxion Daily Small Cap Bull 3x Shares -285.40

AUM Winners

BULZ MicroSectors FANG & Innovation 3x Leveraged ETN 1,250.69%
PILL Direxion Daily Pharmaceutical & Medical Bull 3X Shares 86.64%
EZJ ProShares Ultra MSCI Japan 85.72%
CWEB Direxion Daily CSI China Internet Index Bull 2X Shares 59.24%
KORU Direxion Daily MSCI South Korea Bull 3X Shares 46.15%

AUM Losers

UST ProShares Ultra 7-10 Year Treasury -33.31%
DUSL Direxion Daily Industrials Bull 3X Shares -29.86%
MJXL ETFMG 2x Daily Alternative Harvest ETF -20.40%
TPOR Direxion Daily Transportation Bull 3X Shares -19.98%
UMDD ProShares UltraPro MidCap400 -18.36%

Daily ETF Watch

More FANG MicroSectors ETNs Debut

The two notes aim to provide 3x returns on a modified FANG index.

Features and News

Different Ways To Play Preferreds

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Daily ETF Watch

First Trust Takes New Buffered ETF Angle

XJUN offers some leveraged upside in addition to downside protection.

Daily ETF Watch

ETF Odds & Ends: JPMorgan Adds 2 ActiveBuilders

While launches were strong last week, other ETF-related actions were few and far between.

Features and News

How Russell Rebalance Impacts ETFs

Russell’s annual reconstitution event has a significant impact on $364 billion in ETF assets.

Daily ETF Watch

New Angle On Defined Outcome ETFs

Innovator expands its ‘Accelerated’ family and adds a new product designed for the very risk-averse investor.

Daily ETF Watch

ETFMG Offering Leveraged ETFs

The three funds are tied to the same indexes as some of ETF Managers Group’s existing ETFs.

Daily ETF Watch

ETF Odds & Ends: Bitcoin ETFs Put Off Again

Plus, some of the launches and other ETF actions that took place over the past two weeks.