5 Best Leveraged ETFs To Start June

The momentum that Wall Street enjoyed last month continues into June. This is especially true as Dow Jones recorded its biggest weekly gain since March to start the month, while S&P 500 and Nasdaq logged their third straight weekly gain. The Dow jumped 2.8% last week while the S&P 500 and the Nasdaq added 1.6% and 1.2%, respectively.

The impressive gains came on the back of a raft of upbeat data, which indicates a strong economy after a slowdown in the first quarter, keeping aside tariff threats and trade fears. In particular, hiring in the United States rebounded with the addition of higher-than-expected 223,000 jobs in May. Unemployment dropped from 3.9% to 3.8%, the lowest since 2000 while average hourly wages rose 8 cents, pushing the year-over-year increase to 2.7%.

Manufacturing activity expanded at a faster pace than expected last month while construction spending rose 1.8% in April -- the largest increase since January 2016. Consumer spending, which accounts for more than two-thirds of U.S. economic activity, surged the most in five months by 0.6% in April, while consumer confidence rebounded near the 18-year high in May.

All these data have spurred strong optimism about the economy and resulted in huge demand for leveraged ETFs as investors seek to register big gains in a short span. Leveraged funds provide multiple exposure (i.e. 2x or 3x) to the daily performance of the underlying index by employing various investment strategies such as swaps, futures contracts, and other derivative instruments. Due to their compounding effect, investors can enjoy higher returns in a very short period of time, provided the trend remains a friend.

Below we have highlighted five ETFs that have gained most and are easily crushing the market to start June. Moreover, these funds will continue to be investors’ darlings this month if rounds of positive data continued to perk up the market.

Direxion Daily Retail Bull 3X Shares (RETL - Free Report)

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