7 Top-Performing Leveraged ETFs Of 2017

This has been a bumper year for the equity markets across the globe as almost all of them have risen every month for the first time in the 30-year history of the MSCI AC World Index. While the U.S. market is in the midst of the second-longest bull run in history with the S&P 500 and the Dow Jones heading for their best years since 2013, international investing has stolen the show on political gridlock in Washington.

Encouraging domestic and international fundamentals as well as better-than-expected corporate earnings are the major catalysts to the global rally. Technology surge and high-flying Internet stocks have also added to the strength. Further, tax reform and jump in oil prices propelled the stocks higher in the second half.

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 trend remains a friend.

Below, we have highlighted seven ETFs that crushed the market this year with stupendous returns. Moreover, these funds will continue to be investors’ darlings heading into the New Year if sentiments remain the same.

Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL - Free Report) – Up 263.6%

The housing sector has been in good shape thanks to lower mortgage rates, ongoing job creation, wage gains, and accelerating household formations. The fund creates a three times (3x) leveraged long position in the Dow Jones U.S. Select Home Construction Index. It charges an annual fee of 95 bps and trades in a light average daily volume of about 36,000 shares. The fund has accumulated AUM of $82.5 million.

Daily CSI China Internet Index Bull 2X Shares (CWEB - Free Report) – Up 158.6%

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