5 Top-Performing Leveraged ETFs Of Last Week

After a sell-off early last week — following the United States' expanded blacklisted Chinese technology companies over alleged human rights violations — global stocks rebounded strongly on trade optimism.

This is especially true as the world’s two largest economies agreed to the first phase of a substantial trade deal wherein the United States suspended the tariff hike on $250 billion worth of Chinese goods slated to be effective next week and Beijing agreed to buy $40-$50 billion in U.S. farm products. Though the partial deal has not been signed yet, the move has eased concerns over a global slowdown.

Further, hopes of a Brexit deal added to the strength. The European Union and the United Kingdom have agreed to intensive negotiations in the coming days.

This combination of news has 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 market remains bullish.

Below we have highlighted the five best-leveraged equity ETFs of last week that could continue to be investors’ darlings.

Direxion Daily MSCI European Financials Bull 2X Shares (EUFL - Free Report) – Up 10.8%

This ETF seeks to deliver two times the performance of the MSCI Europe Financials Index, charging investors 80 bps in annual fees. It has AUM of $6.7 billion and average daily volume of 1,000 shares.

Direxion Daily MSCI South Korea Bull 3X Shares (KORU - Free Report) – Up 8.9%

This ETF offers 3x leveraged exposure to the South Korean equity market by tracking the MSCI Korea 25/50 Index. It charges an annual fee of 95 bps and trades in a light average daily volume of about 106,000 shares. The fund has accumulated AUM of $42.5 million.

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