10 Best Leveraged ETFs Of The 10-Year Bull Market

The U.S. bull market will turn 10 on Mar 9 with more room to run. The S&P 500 Index has quadrupled, rallying more than 300%, from the bear-market bottom of 676.53 hit on Mar 9, 2009 — representing the longest bull market in history. However, it is not the strongest as the stock prices in the 1990s bull market increased 417% at the peak, more than 100 percentage points above the current bull market.

While record stock buybacks and all-time high dividends have been the key catalysts, stronger corporate earnings and tax reforms have boosted the longevity of the bulls lately. The trend is likely to continue for another year with major bourses showing strength on hopes of a trade deal, dovish Fed and improving Chinese economic health. However, global slowdown concerns and geopolitical tensions continue to block the roads of the bull.

Given this, investors should bet on the best performing leveraged ETFs of the 10-year bull market. 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. These have led to abnormal returns in the past decade.

Below, we have highlighted 10 ETFs that could see more gains if the market continues to trend upward.

Direxion Daily Technology Bull 3x Shares (TECL - Free Report) – Up 4352%

This ETF targets the technology sector with three times (3x) exposure to the Technology Select Sector Index. It has amassed about $647.7 million in its asset base and charges 95 bps in fees per year. Volume is good as it exchanges around 347,000 shares a day on average.

ProShares Ultra QQQ (QLD - Free Report) – Up 2686%

This product offers twice (2x) the return of the daily performance of the Nasdaq-100 Index, charging 0.95% in annual fees. The fund has AUM of $1.8 billion and trades in solid average daily volume of 1.9 million shares.

Direxion Daily S&P 500 Bull 3x Shares (SPXL - Free Report) – Up 2617%

1 2 3
View single page >> |

Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.