8 Top-Performing Leveraged ETFs Of Last Week

Amid trade volatility, Wall Street recorded its strongest weekly performance since June with the S&P 500 rising 2.8%, Dow Jones climbing 3% and Nasdaq advancing 2.7% in the last five trading sessions. Most of the gains last week came on the back of positive trade news between the United States and China.

China’s commerce ministry said that it won’t retaliate against the latest tariff increase announced by Trump administration and is looking to resume trade talks with the United States this month. Treasury Secretary Steven Mnuchin also said that U.S. trade officials are expecting to meet China’s negotiators in Washington.

The bullish fundamentals have 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 positive.

Below we have highlighted eight leveraged equity ETFs that piled up more than 10% last week and could remain investors’ darlings.

MicroSectors U.S. Big Banks Index 3X Leveraged ETN (BNKU - Free Report) – Up 15.6%

BNKU seeks to offer three times leveraged exposure to the Solactive MicroSectors U.S. Big Banks Index. The ETN has accumulated $23 million in its asset base. It charges 95 bps in annual fees and trades in average daily volume of under 1,000 shares.

Direxion Daily Transportation Bull 3X Shares (TPOR - Free Report) - Up 14%

This ETF targets the transportation sector and seeks to deliver thrice the daily performance of the Dow Jones Transportation Average. The product has AUM of $3.5 million and charges 95 bps in fees and expenses. It trades in lower volumes of about 17,000 shares per day.

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