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 $36.13B. 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 $3.87B in assets. In the last trailing year, the best performing Leveraged ETF was the UVXY at 179.28%. The most-recent ETF launched in the Leveraged space was the ProShares UltraPro Communication Services Select Sector ETF UCOM in 01/15/19.

TOP ETF PERFORMERS

CHAU Direxion Daily CSI 300 China A Share Bull 2X Shares 28.85%
CHAU Direxion Daily CSI 300 China A Share Bull 2X Shares 28.85%
UWT VelocityShares 3x Long Crude Oil ETN 19.10%
UWT VelocityShares 3x Long Crude Oil ETN 19.10%
USOU United States 3x Oil Fund 18.88%

BOTTOM ETF PERFORMERS

TVIX VelocityShares Daily 2x VIX Short-Term ETN -19.99%
TVIX VelocityShares Daily 2x VIX Short-Term ETN -19.99%
UVXY ProShares Ultra VIX Short-Term Futures ETF -15.35%
UVXY ProShares Ultra VIX Short-Term Futures ETF -15.35%
DGP DB Gold Double Long ETN -10.58%

TOP CREATIONS

TVIX VelocityShares Daily 2x VIX Short-Term ETN 366.78
TVIX VelocityShares Daily 2x VIX Short-Term ETN 366.78
UVXY ProShares Ultra VIX Short-Term Futures ETF 224.99
UVXY ProShares Ultra VIX Short-Term Futures ETF 224.99
UGAZ VelocityShares 3X Long Natural Gas ETN 114.09

TOP REDEMPTIONS

TQQQ ProShares UltraPro QQQ -196.28
TQQQ ProShares UltraPro QQQ -196.28
NUGT Direxion Daily Gold Miners Index Bull 3X Shares -176.51
NUGT Direxion Daily Gold Miners Index Bull 3X Shares -176.51
FAS Direxion Daily Financial Bull 3x Shares -115.87

AUM WINNERS

KORU Direxion Daily MSCI South Korea Bull 3X Shares 57.57%
KORU Direxion Daily MSCI South Korea Bull 3X Shares 57.57%
CHAU Direxion Daily CSI 300 China A Share Bull 2X Shares 56.47%
CHAU Direxion Daily CSI 300 China A Share Bull 2X Shares 56.47%
UBOT Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 3X Shares 54.62%

AUM LOSERS

TPOR Direxion Daily Transportation Bull 3X Shares -65.57%
TPOR Direxion Daily Transportation Bull 3X Shares -65.57%
MEXX Direxion Daily MSCI Mexico Bull 3X Shares -52.77%
MEXX Direxion Daily MSCI Mexico Bull 3X Shares -52.77%
FIEG Deutsche Bank FI Enhanced Global High Yield ETN -33.94%

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