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 115 ETFs traded in the U.S. markets, Leveraged ETFs gather total assets under management of $39.58B. The average expense ratio is 1.06%. 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 $8.90B in assets. In the last trailing year, the best performing Leveraged ETF was the FNGU at 323.86%. The most-recent ETF launched in the Leveraged space was the Innovator Double Stacker 9 Buffer ETF - October DBOC in 10/01/20.

Top ETF Performers

NRGU MicroSectors U.S. Big Oil Index 3X Leveraged ETN 74.82%
DPST Direxion Daily Regional Banks Bull 3X Shares 66.48%
HIBL Direxion Daily S&P 500 High Beta Bull 3X Shares 59.88%
MEXX Direxion Daily MSCI Mexico Bull 3X Shares 56.72%
NRGO MicroSectors U.S. Big Oil Index 2X Leveraged ETN 50.99%

Bottom ETF Performers

BOIL ProShares Ultra Bloomberg Natural Gas -37.71%
UVXY ProShares Ultra VIX Short-Term Futures ETF -29.73%
JNUG Direxion Daily Junior Gold Miners Index Bull 2X Shares -19.77%
NUGT Direxion Daily Gold Miners Index Bull 2X Shares -19.69%
NAIL Direxion Daily Homebuilders & Supplies Bull 3X Shares -13.07%

Top Creations

TQQQ ProShares UltraPro QQQ 280.68
UVXY ProShares Ultra VIX Short-Term Futures ETF 145.34
TECL Direxion Daily Technology Bull 3X Shares 80.75
UCO ProShares Ultra Bloomberg Crude Oil 74.35
UPRO ProShares UltraPro S&P500 49.13

Top Redemptions

SOXL Direxion Daily Semiconductor Bull 3X Shares -209.99
TNA Direxion Daily Small Cap Bull 3x Shares -159.09
LABU Direxion Daily S&P Biotech Bull 3X Shares -97.72
DPST Direxion Daily Regional Banks Bull 3X Shares -81.97
FAS Direxion Daily Financial Bull 3x Shares -79.39

AUM Winners

DUSL Direxion Daily Industrials Bull 3X Shares 70.67%
NRGU MicroSectors U.S. Big Oil Index 3X Leveraged ETN 68.71%
BOIL ProShares Ultra Bloomberg Natural Gas 61.32%
NRGO MicroSectors U.S. Big Oil Index 2X Leveraged ETN 47.74%
BNKU MicroSectors U.S. Big Banks Index 3X Leveraged ETN 42.34%

AUM Losers

LMLB ETRACS Monthly Pay 2xLeveraged Wells Fargo MLP Ex-Energy ETN Series B -64.33%
FRLG Large Cap Growth Index-Linked ETN -61.96%
BDCY ETRACS 2x Monthly Leveraged Wells Fargo Diversified BDC Index ETN Series B -37.47%
SDYL ETRACS Monthly Pay 2xLeveraged S&P Dividend ETN -29.22%
TYD Direxion Daily 7-10 Year Treasury Bull 3x Shares -25.96%

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