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 $36.21B. 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 $3.83B in assets. In the last trailing year, the best performing Leveraged ETF was the UVXY at 198.94%. The most-recent ETF launched in the Leveraged space was the MicroSectors U.S. Big Oil Index 2X Leveraged ETN NRGO in 04/09/19.

TOP ETF PERFORMERS

DAUD VelocityShares Daily 4x Long USD vs AUD ETN 15.31%
CURE Direxion Daily Healthcare Bull 3x Shares 12.42%
DRN Direxion Daily MSCI Real Estate Bull 3x Shares 11.79%
DFVL iPath US Treasury 5-Year Bull ETN 11.74%
UTSL Direxion Daily Utilities Bull 3X Shares 11.18%

BOTTOM ETF PERFORMERS

SOXL Direxion Daily Semiconductor Bull 3X Shares -37.23%
GUSH Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 3X Shares -35.84%
GASL Direxion Daily Natural Gas Related Bull 3X Shares -31.98%
KORU Direxion Daily MSCI South Korea Bull 3X Shares -31.57%
USD ProShares Ultra Semiconductors -30.21%

TOP CREATIONS

TVIX VelocityShares Daily 2x VIX Short-Term ETN 277.43
UVXY ProShares Ultra VIX Short-Term Futures ETF 226.45
UGAZ VelocityShares 3X Long Natural Gas ETN 216.51
JNUG Direxion Daily Junior Gold Miners Index Bull 3X Shares 206.87
NUGT Direxion Daily Gold Miners Index Bull 3X Shares 186.71

TOP REDEMPTIONS

TQQQ ProShares UltraPro QQQ -285.01
SOXL Direxion Daily Semiconductor Bull 3X Shares -172.93
FAS Direxion Daily Financial Bull 3x Shares -147.52
TNA Direxion Daily Small Cap Bull 3x Shares -120.94
UCO ProShares Ultra Bloomberg Crude Oil -92.55

AUM WINNERS

PILL Direxion Daily Pharmaceutical & Medical Bull 3X Shares 222.61%
TAWK Direxion Daily Communication Services Index Bull 3X Shares 41.73%
WANT Direxion Daily Consumer Discretionary Bull 3x Shares 33.34%
TMF Direxion Daily 20+ Year Treasury Bull 3X Shares 26.97%
PFFA Virtus InfraCap U.S. Preferred Stock ETF 23.61%

AUM LOSERS

UBOT Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 3X Shares -41.36%
USD ProShares Ultra Semiconductors -38.18%
EET ProShares Ultra MSCI Emerging Markets -34.89%
WTIU UBS ETRACS - ProShares Daily 3x Long Crude ETN -34.67%
DUSL Direxion Daily Industrials Bull 3X Shares -34.66%

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