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 129 ETFs traded on the U.S. markets, Leveraged ETFs have total assets under management of $27.70B. The average expense ratio is 1.03%. Leveraged ETFs can be found in the following asset classes:

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

The largest Leveraged ETF is the Direxion Daily Semiconductor Bull 3X Shares SOXL with $4.92B in assets. In the last trailing year, the best-performing Leveraged ETF was QLD at 214.06%. The most recent ETF launched in the Leveraged space was the AdvisorShares Poseidon Dynamic Cannabis ETF PSDN on 11/16/21.

Top ETF Performers

UVXY ProShares Ultra VIX Short-Term Futures ETF 34.19%
NAIL Direxion Daily Homebuilders & Supplies Bull 3X Shares 31.82%
SOXL Direxion Daily Semiconductor Bull 3X Shares 22.06%
USD ProShares Ultra Semiconductors 21.74%
TMF Direxion Daily 20+ Year Treasury Bull 3X Shares 10.96%

Bottom ETF Performers

BOIL ProShares Ultra Bloomberg Natural Gas -49.78%
LABU Direxion Daily S&P Biotech Bull 3X Shares -34.42%
UCO ProShares Ultra Bloomberg Crude Oil -28.63%
MJXL ETFMG 2x Daily Alternative Harvest ETF -28.16%
CLDL Direxion Daily Cloud Computing Bull 2X Shares -25.37%

Top Creations

TNA Direxion Daily Small Cap Bull 3x Shares 368.16
LABU Direxion Daily S&P Biotech Bull 3X Shares 285.59
FAS Direxion Daily Financial Bull 3x Shares 207.77
UPRO ProShares UltraPro S&P500 169.13
CWEB Direxion Daily CSI China Internet Index Bull 2X Shares 126.04

Top Redemptions

SOXL Direxion Daily Semiconductor Bull 3X Shares -599.70
UVXY ProShares Ultra VIX Short-Term Futures ETF -252.69
TECL Direxion Daily Technology Bull 3X Shares -101.30
NAIL Direxion Daily Homebuilders & Supplies Bull 3X Shares -95.90
ERX Direxion Daily Energy Bull 2x Shares -61.64

AUM Winners

TENG Direxion Daily 5G Communications Bull 2X Shares 70.81%
SILX ETFMG Prime 2x Daily Junior Silver Miners ETF 65.05%
USD ProShares Ultra Semiconductors 44.77%
WEBL Direxion Daily Dow Jones Internet Bull 3X Shares 30.21%
FNGG Direxion Daily Select Large Caps & FANGs Bull 2X Shares 23.86%

AUM Losers

CROC ProShares UltraShort Australian Dollar -44.42%
UJB ProShares Ultra High Yield -39.02%
PILL Direxion Daily Pharmaceutical & Medical Bull 3X Shares -31.42%
AWYX ETFMG 2x Daily Travel Tech ETF -27.54%
EURL Direxion Daily FTSE Europe Bull 3X Shares -25.50%

Features and News

Marijuana ETFs Blaze Higher

Cannabis-related ETFs are moving higher on news of a Republican-backed proposal for legalization.

Daily ETF Watch

ETF Odds & Ends: Additional Launches

The week was characterized mainly by the rollouts of new funds.

Daily ETF Watch

ETF Odds & Ends: Additional Launches

The week was characterized mainly by the rollouts of new funds.

Bitcoin & Crypto

SEC Halts Geared Bitcoin ETF Filings

Two bids to start funds with more exposure to BTC futures hit a regulatory wall.

Features and News

NatGas Shortage Fuels ETFs

Huge price spikes for the resource in Europe ahead of winter are driving short returns.

ETF.com Analysis

Lottery Ticket ETFs Flourish

Leveraged and inverse ETF trading tools can be dangerous if in the wrong hands.

ETF.com Analysis

Lottery Ticket ETFs Flourish

Leveraged and inverse ETF trading tools can be dangerous if in the wrong hands.

Daily ETF Watch

ETFMG Launches 2X Inverse Cannabis ETF

Twice the (downside) potency?

Features and News

Leveraged ETFs Don’t Always Deliver

Leveraged and inverse ETFs appeal to speculative investors who want to go big, but they aren’t always what they seem.