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 138 ETFs traded in the U.S. markets, Leveraged ETFs gather total assets under management of $23.87B. The average expense ratio is 1.09%. Leveraged ETFs can be found in the following asset classes:

  • Equity
  • Fixed Income
  • Currency
  • Commodities
  • Alternatives

The largest Leveraged ETF is the ProShares UltraPro QQQ TQQQ with $3.36B in assets. In the last trailing year, the best performing Leveraged ETF was the TMF at 119.46%. The most-recent ETF launched in the Leveraged space was the MicroSectors Cannabis 2x Leveraged ETN MJO in 12/10/19.

Top ETF Performers

TVIX VelocityShares Daily 2x VIX Short-Term ETN 59.03%
UVXY ProShares Ultra VIX Short-Term Futures ETF 57.55%
DAUD VelocityShares Daily 4x Long USD vs AUD ETN 26.36%
DGBP VelocityShares Daily 4x Long USD vs GBP ETN 19.97%
DEUR VelocityShares Daily 4x Long USD vs EUR ETN 14.22%

Bottom ETF Performers

JNUG Direxion Daily Junior Gold Miners Index Bull 2X Shares -92.17%
REML Credit Suisse X-Links Monthly Pay 2xLeveraged Mortgage REIT ETN -90.06%
GUSH Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X Shares -89.87%
BRZU Direxion Daily MSCI Brazil Bull 2X Shares -88.84%
NAIL Direxion Daily Homebuilders & Supplies Bull 3X Shares -83.97%

Top Creations

TQQQ ProShares UltraPro QQQ 1.24K
SPXL Direxion Daily S&P 500 Bull 3X Shares 845.74
UCO ProShares Ultra Bloomberg Crude Oil 747.90
JNUG Direxion Daily Junior Gold Miners Index Bull 2X Shares 590.75
NUGT Direxion Daily Gold Miners Index Bull 2X Shares 576.13

Top Redemptions

TVIX VelocityShares Daily 2x VIX Short-Term ETN -1,185.40
UVXY ProShares Ultra VIX Short-Term Futures ETF -399.87
TMF Direxion Daily 20+ Year Treasury Bull 3X Shares -116.39
UGAZ VelocityShares 3X Long Natural Gas ETN -79.66
SSO ProShares Ultra S&P 500 -47.41

AUM Winners

SPUU Direxion Daily S&P 500 Bull 2X Shares 69.45%
HIBL Direxion Daily S&P 500 High Beta Bull 3X Shares 59.29%
RUSL Direxion Daily Russia Bull 2X Shares 54.04%
UCO ProShares Ultra Bloomberg Crude Oil 48.59%
XCOM ProShares Ultra Communication Services Select Sector ETF 48.49%

AUM Losers

REML Credit Suisse X-Links Monthly Pay 2xLeveraged Mortgage REIT ETN -90.60%
NRGU MicroSectors U.S. Big Oil Index 3X Leveraged ETN -86.42%
BDCY ETRACS 2x Monthly Leveraged Wells Fargo Diversified BDC Index ETN Series B -80.72%
SMHB ETRACS 2xMonthly Pay Leveraged U.S. Small Cap High Dividend ETN Series B -79.42%
BNKU MicroSectors U.S. Big Banks Index 3X Leveraged ETN -70.10%

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