6 Top-Performing Leveraged ETFs Of Last Week

Wall Street continued last year’s spectacular performance with major indices hitting new highs on several occasions last week. The rally was powered by rounds of upbeat data and Q4 earnings optimism. In particular, strong U.S. housing data and signs of resilience in the Chinese economy raised hopes of a global rebound.

The upward momentum is also supported by the signing of phase one of the U.S.-China trade deal and Congress approval of the U.S., Mexico, Canada trade pact. In fact, all three major indices posted their strongest weekly gains since Aug 30 last year. The S&P 500 gained nearly 2% while Dow Jones has risen 1.8%. Meanwhile, Nasdaq climbed 2.3%.

The bullishness 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 six best-leveraged equity ETFs of last week that could continue to be investor favorites.

MicroSectors Cannabis 2X Leveraged ETN (MJO - Free Report) – Up 13.6%

This ETN offers two times (2x) leveraged exposure to the Indxx North American Cannabis Index, which is designed to track the performance of North American companies that provide products or services related to the medical or industrial use of cannabis or cannabis related products. It has attracted $11.6 million in its asset base within a month of debut and trades in average daily volume of 1,000 shares. The note charges investors 95 bps in annual fees.

Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL - Free Report) — Up 12.2%

NAIL provides leveraged exposure to homebuilders and creates a three times (3x) long position on the Dow Jones U.S. Select Home Construction Index. It charges an annual fee of 95 bps and trades in moderate average daily volume of about 66,000 shares. The fund has accumulated $57 million in its asset base.

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