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 159 ETFs traded in the U.S. markets, Leveraged ETFs gather total assets under management of $38.16B. The average expense ratio is 1.16%. Leveraged ETFs can be found in the following asset classes:

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

The largest Leveraged ETF is the ProShares UltraPro QQQ TQQQ with $3.98B in assets. In the last trailing year, the best performing Leveraged ETF was the UVXY at 182.22%. The most-recent ETF launched in the Leveraged space was the MicroSectors U.S. Big Oil Index 2X Leveraged ETN NRGO in 04/09/19.

TOP ETF PERFORMERS

JNUG Direxion Daily Junior Gold Miners Index Bull 3X Shares 78.60%
NUGT Direxion Daily Gold Miners Index Bull 3X Shares 53.56%
UWT VelocityShares 3x Long Crude Oil ETN 37.68%
USOU United States 3x Oil Fund 37.64%
BRZU Direxion Daily MSCI Brazil Bull 3X Shares 37.54%

BOTTOM ETF PERFORMERS

TVIX VelocityShares Daily 2x VIX Short-Term ETN -28.66%
UVXY ProShares Ultra VIX Short-Term Futures ETF -22.50%
GASL Direxion Daily Natural Gas Related Bull 3X Shares -15.61%
MEXX Direxion Daily MSCI Mexico Bull 3X Shares -7.11%
INDL Direxion Daily MSCI India Bull 3X Shares -7.06%

TOP CREATIONS

UGAZ VelocityShares 3X Long Natural Gas ETN 225.56
UVXY ProShares Ultra VIX Short-Term Futures ETF 52.40
FIHD UBS AG FI Enhanced Global High Yield ETN 46.98
TVIX VelocityShares Daily 2x VIX Short-Term ETN 42.72
UWT VelocityShares 3x Long Crude Oil ETN 41.26

TOP REDEMPTIONS

NUGT Direxion Daily Gold Miners Index Bull 3X Shares -633.99
JNUG Direxion Daily Junior Gold Miners Index Bull 3X Shares -384.32
BRZU Direxion Daily MSCI Brazil Bull 3X Shares -159.37
FAS Direxion Daily Financial Bull 3x Shares -142.40
SSO ProShares Ultra S&P 500 -100.17

AUM WINNERS

WTIU UBS ETRACS - ProShares Daily 3x Long Crude ETN 62.06%
USOU United States 3x Oil Fund 58.63%
UJB ProShares Ultra High Yield 52.88%
SPUU Direxion Daily S&P 500 Bull 2X Shares 46.63%
BOIL ProShares Ultra Bloomberg Natural Gas 41.02%

AUM LOSERS

HOML ETRACS Monthly Reset 2xLeveraged ISE Exclusively Homebuilders ETN -75.11%
LBJ Direxion Daily Latin America Bull 3X Shares -41.72%
PILL Direxion Daily Pharmaceutical & Medical Bull 3X Shares -39.26%
LRET ETRACS Monthly Pay 2xLeveraged MSCI US REIT INDEX ETN -35.78%
PPEM PortfolioPlus Emerging Markets ETF -29.74%

Features and News

Worst Performing ETFs Of The Year

These funds have struggled to find their footing in a strong year for markets.

ETF Report

War Of The Robotic ETFs

The two biggest players in the space seem to be losing ground to a newer fund.

Features and News

Gold Hits 6 Year High, ETF Investors Yawn

Gold prices top $1,400 for the first time in years, boosting returns for 'GLD,' 'IAU' and others. But gold ETF demand flat.

Features and News

How To Access M&A Deals In ETFs

There are two ways to go about getting into this space.  

Daily ETF Watch

ProShares Closing 3 ETFs

Two gold miner ETFs and a credit default swap ETF will be shutting in August.

Features and News

Best Performing Fixed Income ETFs

Interest rates are near their lowest levels of the year, boosting fixed income ETFs. Here are the best of the best so far in 2019.

ETF Industry Perspective

ProShares: Disrupting The Retail ETF Space

Simeon Hyman explains how ProShares captures the effects of retail disruption in its ETF suite.

Features and News

Best Performing Tech ETFs

Running down the best-performing ETFs within 2019’s top sector to date.

Features and News

India ETFs Will React To Election

India is in the midst of the largest and most expensive election in history. Here’s what it means for India ETFs.