9 Leveraged ETFs That Soared More Than 25% To Start 2019

After a bumpy ride in 2018 and a lackluster start to 2019, Wall Street staged a nice comeback following robust December job data and Powell’s comment that the Fed is not in a hurry to raise rates this year. Notably, the American economy added higher-than-expected 312,000 jobs in December — the biggest gain in 10 months — while unemployment jumped to 3.9%, the highest rate since August.

Signs of progress in U.S.-China trade talks, as well as hopes of more stimulus for China's economy, also boosted demand for riskier assets. Additionally, the Fed minutes, which indicated caution on future interest rate hikes, helped to boost sentiment. Oil price also rebounded strongly after a wild fourth quarter on falling production and OPEC-led fresh crude output cuts.

The optimism came amid the longest government shutdown in history, geopolitical tension, and slower global growth concerns. The bullishness has spread across all over the world with global stocks in the green from the year-to-date look.

All these 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 a friend.

Below we have highlighted nine ETFs that have piled up exceptional returns to start 2019. These funds will continue to be investors’ darlings provided the sentiments remain the same.

Direxion Daily Natural Gas Related Bull 3x Shares (GASL - Free Report) – Up 60.4%

This product seeks to deliver three times the daily performance of the ISE Revere Natural Gas Index, which derives a substantial portion of its revenues from the exploration and production of natural gas. The fund has amassed $37.7 million in AUM and trades in a good average daily volume of 286,000 shares. Expense ratio comes in at 0.95%.

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