5 Best Leveraged ETFs Of February

This fund seeks to deliver three times the returns of the S&P Regional Banks Select Industry Index, charging 95 bps in fees per year. It has accumulated $389.6 million in its asset base and trades in an average daily volume of around 315,000 shares.

Daily S&P 500 High Beta Bull 3X Shares (HIBL - Free Report) – Up 62%

This ETF offers three times exposure to the performance of the S&P 500 High Beta Index. It has gathered $88.4 million in its asset base and trades in an average daily volume of 25,000 shares. The fund charges 95 bps in fees per year from its investors.

Direxion Daily S&P Oil & Gas Exploration & Production Bull 2x Shares (GUSH - Free Report) – Up 53.9%

This fund offers two times exposure to the daily performance of the S&P Oil & Gas Exploration & Production Select Industry Index. It has accumulated $786.8 million in its asset base and has a solid average daily volume of around 2.5 million shares. The expense ratio comes in at 0.95%.

Direxion Daily Transportation Bull 3X Shares (TPOR - Free Report) – Up 34.2%

TPOR targets the transportation sector and seeks to deliver three times the daily performance of the Dow Jones Transportation Average. The product has AUM of $52 million and charges 95 bps in fees and expenses. It trades in lower volumes of about 85,000 shares per day.

Bottom Line

While this strategy is highly beneficial for short-term traders, it could lead to huge losses compared to traditional funds in fluctuating or seesawing markets. Further, the funds’ performance could vary significantly from the actual performance of their underlying index over a longer period when compared to the shorter period (such as weeks or months) due to their compounding effect.

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