5 Top-Performing Leveraged ETFs Of October

Direxion Daily MSCI India Bull 3X Shares (INDL - Free Report)

This ETF targets the Indian equity market and seeks to deliver thrice the daily performance of the MSCI India Index. The product has AUM of $103.1 million and charges 95 bps in fees and expenses. It trades in lower volumes of under 50,000 shares per day and was up 21% last month.

Direxion Daily MSCI South Korea Bull 3X Shares (KORU - Free Report)

This fund provides three times 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 16,000 shares. The fund has accumulated AUM of $11.3 million and surged about 20% last month.

Direxion Daily Technology Bull 3x Shares (TECL - Free Report)

This ETF targets the U.S. technology sector with three times leveraged exposure to the Technology Select Sector Index. It has amassed about $441.3 million in its asset base while charges 95 bps in fees per year from investors. Volume is good as it exchanges around 142,000 shares a day on average. The fund added 17.6% in October.

Bottom Line

While this strategy is highly beneficial for short-term traders, it could lead to huge losses compared to traditional funds in fluctuating or seesaw markets. Further, their performances could vary significantly from the actual performance of their underlying index over a longer period when compared with the shorter period (such as, weeks or months) due to their compounding effect.

Still, for ETF investors who are bullish on global equities for the near term, either of the above products could make an interesting choice. Clearly, a near-term long could be intriguing for those with high-risk tolerance, and a belief that the trend is a friend in this corner of the investing world.

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