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 135 ETFs traded on the U.S. markets, Leveraged ETFs have total assets under management of $48.09B. The average expense ratio is 1.01%. Leveraged ETFs can be found in the following asset classes:

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

The largest Leveraged ETF is the ProShares UltraPro QQQ TQQQ with $11.24B in assets. In the last trailing year, the best-performing Leveraged ETF was BOIL at 406.15%. The most recent ETF launched in the Leveraged space was the AXS 2X Innovation ETF TARK on 05/02/22.

Top ETF Performers

NRGU MicroSectors U.S. Big Oil Index 3X Leveraged ETN 69.72%
OILU MicroSectors Oil & Gas Exploration & Production 3X Leveraged ETN 55.70%
BOIL ProShares Ultra Bloomberg Natural Gas 47.25%
ERX Direxion Daily Energy Bull 2x Shares 36.45%
DIG ProShares Ultra Oil & Gas 34.07%

Bottom ETF Performers

UCO ProShares Ultra Bloomberg Crude Oil -70.62%
YCS ProShares UltraShort Yen -50.65%
WEBL Direxion Daily Dow Jones Internet Bull 3X Shares -41.18%
LABU Direxion Daily S&P Biotech Bull 3X Shares -37.08%
WANT Direxion Daily Consumer Discretionary Bull 3x Shares -36.10%

Top Creations

SOXL Direxion Daily Semiconductor Bull 3X Shares 2.28K
TQQQ ProShares UltraPro QQQ 2.09K
LABU Direxion Daily S&P Biotech Bull 3X Shares 295.36
TNA Direxion Daily Small Cap Bull 3x Shares 193.25
QLD ProShares Ultra QQQ 114.77

Top Redemptions

UVXY ProShares Ultra VIX Short-Term Futures ETF -373.37
UCO ProShares Ultra Bloomberg Crude Oil -192.29
SSO ProShares Ultra S&P 500 -46.09
ERX Direxion Daily Energy Bull 2x Shares -43.81
BRZU Direxion Daily MSCI Brazil Bull 2X Shares -28.78

AUM Winners

TARK AXS 2X Innovation ETF 595.64%
UCO ProShares Ultra Bloomberg Crude Oil 320.66%
UVIX VS Trust 2X LONG VIX FUTURES ETF 148.31%
YCS ProShares UltraShort Yen 97.09%
NRGU MicroSectors U.S. Big Oil Index 3X Leveraged ETN 65.74%

AUM Losers

WANT Direxion Daily Consumer Discretionary Bull 3x Shares -46.26%
UGE ProShares Ultra Consumer Goods -43.03%
DRN Direxion Daily Real Estate Bull 3x Shares -37.89%
WEBL Direxion Daily Dow Jones Internet Bull 3X Shares -36.76%
TPOR Direxion Daily Transportation Bull 3X Shares -35.06%

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