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5 Best Leveraged ETFs of Last Week Up At Least 10%
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Wall Street was mixed-to-downbeat last week. The S&P 500, the Dow Jones and the Nasdaq have lost about 1.8%, 1.0% and 2.2%, respectively, while the Russell 2000 was up 1.4%. A new 40-year high inflation reading and rising rate worries played spoilsport though investors digested the Fed’s signal of hike rates this year (probably the first one in March).
At the end of Feb 10, 2022, the yield on the benchmark 10-year Treasury note jumped to 2.03% from 1.81% at the start of the month. US 10-year yield topped 2% for first time since August 2019. As of Feb 10, 2022, CME’s FedWatch Tool said that there are 32.9% chances of 2022 closing out with 175-200 bps of rates while a 26.5% probability is there for the year to end at a rate of 200-225 bps (read: ETFs to Play as U.S. Benchmark Treasury Yield Tops 2%).
Growing tensions between Russia and Ukraine also weighed on the global markets. Against this backdrop, below we highlight a few leveraged ETFs that were up at least 10% last week.
ETFs in Focus
Ultrashort Bloomberg Natural Gas ETF (KOLD - Free Report) – Up 24.8%
The colder-than-normal temperatures in January lowered natural gas storage inventories below the prior five-year average, with stockpiles exiting the month at 2.3 Tcf, EIA said, as quoted on a source. This has boosted the price. Plus, Russian tensions are acting as another headwind. European gas prices surged on reduced Russian flows via Ukraine, as quoted on a Bloomberg article.
Etfmg Prime 2X Daily Junior Silver Miners ETF – Up 21.9%
Miners ranging from silver to gold staged a rally last week, with silver showing more command. A volatile market has led to gains in the safe-haven metals like gold and silver. Plus, silver is often considered as an industrial metal too. About 50% of the metal’s total demand comes from industrial applications, while 30% comes from jewelry/silverware/coins and medal manufacturers.
The industrial demand for silver is rising, especially on the green energy front. Silver is used in solar power and electric vehicle applications. Hence, growth in the global solar PV industry, a likely rebound in global computer shipments, as well as new sources of demand for sensors used in IoT is providing a boost to silver demand.
Gold bullion ETF (GLD - Free Report) gained 2.2% last week on its safe-haven appeal. No wonder, leveraged gold mining ETN GDXU jumped last week. The MicroSectors Gold Miners 3X Leveraged ETN is linked to a three-times leveraged participation in the performance of the S-Network MicroSectors Gold Miners Index.
Etfmg 2X Daily Alternative Harvest ETF – Up 15.7%
Cannabis ETFs made a solid comeback last week. The re-introduction and passing of the Secure and Fair Enforcement Banking Act in the House of Representatives and discussion around other cannabis-related bills led to the jump, said AdvisorShares’ Dan Ahrens, as quoted on CNBC. Part of the America Competes Act, the SAFE Banking Act would give cannabis companies access to financial institutions and capital markets, which is a plus for the sector.
Canopy Growth’s (CGC - Free Report) upbeat earnings report is another winning factor that acted as a cornerstone for the entire industry. Canopy Growth Corporation last week came out with a quarterly loss (proforma) of 22 cents per share versus the Zacks Consensus Estimate of a loss of 23 cents. This compared to loss of 98 cents per share a year ago. Its revenues of $111.84 million surpassed the Zacks Consensus Estimate by 1.12%. This compared to year-ago revenues of $117.05 million.
ProShares Ultra VIX ShortTerm Futures ETF UVXY) – Up 13.8%
Since the broader market was highly volatile last week, ETFs tracking the market volatility crept up. The ProShares Ultra VIX Short-Term Futures ETF seeks daily investment results, before fees and expenses that correspond to one and one-half times the daily performance of the S&P 500 VIX Short-Term Futures Index. The ETF UVXY charges 95 bps in fees.
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5 Best Leveraged ETFs of Last Week Up At Least 10%
Wall Street was mixed-to-downbeat last week. The S&P 500, the Dow Jones and the Nasdaq have lost about 1.8%, 1.0% and 2.2%, respectively, while the Russell 2000 was up 1.4%. A new 40-year high inflation reading and rising rate worries played spoilsport though investors digested the Fed’s signal of hike rates this year (probably the first one in March).
At the end of Feb 10, 2022, the yield on the benchmark 10-year Treasury note jumped to 2.03% from 1.81% at the start of the month. US 10-year yield topped 2% for first time since August 2019. As of Feb 10, 2022, CME’s FedWatch Tool said that there are 32.9% chances of 2022 closing out with 175-200 bps of rates while a 26.5% probability is there for the year to end at a rate of 200-225 bps (read: ETFs to Play as U.S. Benchmark Treasury Yield Tops 2%).
Growing tensions between Russia and Ukraine also weighed on the global markets. Against this backdrop, below we highlight a few leveraged ETFs that were up at least 10% last week.
ETFs in Focus
Ultrashort Bloomberg Natural Gas ETF (KOLD - Free Report) – Up 24.8%
The colder-than-normal temperatures in January lowered natural gas storage inventories below the prior five-year average, with stockpiles exiting the month at 2.3 Tcf, EIA said, as quoted on a source. This has boosted the price. Plus, Russian tensions are acting as another headwind. European gas prices surged on reduced Russian flows via Ukraine, as quoted on a Bloomberg article.
Etfmg Prime 2X Daily Junior Silver Miners ETF – Up 21.9%
Miners ranging from silver to gold staged a rally last week, with silver showing more command. A volatile market has led to gains in the safe-haven metals like gold and silver. Plus, silver is often considered as an industrial metal too. About 50% of the metal’s total demand comes from industrial applications, while 30% comes from jewelry/silverware/coins and medal manufacturers.
The industrial demand for silver is rising, especially on the green energy front. Silver is used in solar power and electric vehicle applications. Hence, growth in the global solar PV industry, a likely rebound in global computer shipments, as well as new sources of demand for sensors used in IoT is providing a boost to silver demand.
Microsectors Gold Miners 3X ETN (GDXU - Free Report) – Up 20.1%
Gold bullion ETF (GLD - Free Report) gained 2.2% last week on its safe-haven appeal. No wonder, leveraged gold mining ETN GDXU jumped last week. The MicroSectors Gold Miners 3X Leveraged ETN is linked to a three-times leveraged participation in the performance of the S-Network MicroSectors Gold Miners Index.
Etfmg 2X Daily Alternative Harvest ETF – Up 15.7%
Cannabis ETFs made a solid comeback last week. The re-introduction and passing of the Secure and Fair Enforcement Banking Act in the House of Representatives and discussion around other cannabis-related bills led to the jump, said AdvisorShares’ Dan Ahrens, as quoted on CNBC. Part of the America Competes Act, the SAFE Banking Act would give cannabis companies access to financial institutions and capital markets, which is a plus for the sector.
Canopy Growth’s (CGC - Free Report) upbeat earnings report is another winning factor that acted as a cornerstone for the entire industry. Canopy Growth Corporation last week came out with a quarterly loss (proforma) of 22 cents per share versus the Zacks Consensus Estimate of a loss of 23 cents. This compared to loss of 98 cents per share a year ago. Its revenues of $111.84 million surpassed the Zacks Consensus Estimate by 1.12%. This compared to year-ago revenues of $117.05 million.
ProShares Ultra VIX ShortTerm Futures ETF UVXY) – Up 13.8%
Since the broader market was highly volatile last week, ETFs tracking the market volatility crept up. The ProShares Ultra VIX Short-Term Futures ETF seeks daily investment results, before fees and expenses that correspond to one and one-half times the daily performance of the S&P 500 VIX Short-Term Futures Index. The ETF UVXY charges 95 bps in fees.