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 162 ETFs traded in the U.S. markets, Leveraged ETFs gather total assets under management of $37.11B. The average expense ratio is 1.16%. 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 $3.71B in assets. In the last trailing year, the best performing Leveraged ETF was the NAIL at 161.53%. The most-recent ETF launched in the Leveraged space was the Direxion Daily S&P 500 High Beta Bull 3X Shares HIBL in 11/07/19.

Top ETF Performers

UBIO ProShares UltraPro Nasdaq Biotechnology 36.76%
LABU Direxion Daily S&P Biotech Bull 3X Shares 35.65%
FNGU MicroSectors FANG+ Index 3X Leveraged ETN 24.76%
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares 24.43%
TECL Direxion Daily Technology Bull 3X Shares 23.85%

Bottom ETF Performers

TVIX VelocityShares Daily 2x VIX Short-Term ETN -30.87%
UVXY ProShares Ultra VIX Short-Term Futures ETF -24.06%
MLPQ ETRACS 2xMonthly Leveraged Alerian MLP Infrastructure Index ETN Series B -18.68%
AMJL Credit Suisse X-Links Monthly Pay 2xLeveraged Alerian MLP Index ETN -16.57%
MLPZ ETRACS 2xMonthly Leveraged S&P MLP Index ETN Series B -14.71%

Top Creations

TVIX VelocityShares Daily 2x VIX Short-Term ETN 350.78
UGAZ VelocityShares 3X Long Natural Gas ETN 325.08
UVXY ProShares Ultra VIX Short-Term Futures ETF 143.75
JNUG Direxion Daily Junior Gold Miners Index Bull 3X Shares 101.63
NUGT Direxion Daily Gold Miners Index Bull 3X Shares 100.64

Top Redemptions

TQQQ ProShares UltraPro QQQ -428.60
LABU Direxion Daily S&P Biotech Bull 3X Shares -81.46
BRZU Direxion Daily MSCI Brazil Bull 3X Shares -79.94
SOXL Direxion Daily Semiconductor Bull 3X Shares -79.79
TMF Direxion Daily 20+ Year Treasury Bull 3X Shares -71.70

AUM Winners

LBDC ETRACS 2xLeveraged Long Wells Fargo Business Development Company ETN Series B 442.19%
DUSL Direxion Daily Industrials Bull 3X Shares 79.94%
WEBL Direxion Daily Dow Jones Internet Bull 3X Shares 57.88%
HIBL Direxion Daily S&P 500 High Beta Bull 3X Shares 51.32%
EFO ProShares Ultra MSCI EAFE 48.21%

AUM Losers

URR Market Vectors-Double Long Euro ETN -62.71%
KORU Direxion Daily MSCI South Korea Bull 3X Shares -60.44%
USOU United States 3x Oil Fund -46.66%
OILU ProShares UltraPro 3x Crude Oil ETF -38.61%
UWT VelocityShares 3x Long Crude Oil ETN -36.17%

Daily ETF Watch

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Daily ETF Watch

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Daily ETF Watch

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Daily ETF Watch

1st August ETF Closures Final

Three funds from ProShares have shut down.

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ETFs like 'VOO' and 'USMV' may have seen the largest inflows of the year on an absolute dollar basis, but many ETFs are growing faster on a percentage basis.

Features and News

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

ETF Report

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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.