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Top Inverse/Leveraged ETFs of Last Week

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Wall Street was upbeat last week. The S&P 500, the Dow Jones and the Nasdaq Composite advanced about 2.4%, 2% and 2.2%, respectively last week. Easing inflation has helped the broader market to gain strength. The Personal Consumption Expenditures (PCE) index advanced 3.8% versus April's 4.3%, and excluding volatile food and energy, the core PCE index gained 0.3%, down from 0.4% in the previous month.

There were also some significant developments in individual stocks. Apple reached a $3 trillion market valuation for the first time since January 2022???. Despite these positive developments, some concerns remain. Traders were pricing in an 84.3% chance that the Fed will hike rates by 25 basis points to a 5.25%-5.50% range in its July meeting???.

Against this backdrop, below we highlight a few top-performing inverse/leveraged of last week.

ETFs in Focus

Direxion Daily Electric and Autonomous Vehicles Bull 2X Shares (EVAV - Free Report) – Up 27.1%

There has been a significant push toward more sustainable transport globally. Electric vehicle sales have surged amid this movement, and the market share of EVs is expected to grow in the coming years. Stricter fuel emission standards, expanding tax-based incentives for EV buyers, and the rollout of more vehicle charging stations under supportive administrations are accelerating the adoption of EVs.

GraniteShares 1.5x Long Coinbase Daily ETF (CONL - Free Report) – Up 24.6%

Most cryptocurrency prices moved north, although bitcoin slightly decreased after surpassing the $31,000 mark. While BlackRock's application for a bitcoin ETF inspired enthusiasm among investors, HSBC Bank too introduced its own offerings for bitcoin and ethereum. Last week, the largest cryptocurrency in the world reached its highest value in more than a year, following the pursuit of regulatory approval for BTC exchange traded funds by prominent investment firms.

MAX Airlines 3X Leveraged ETNs (JETU - Free Report) – Up 16.7%

After the Covid-19 pandemic froze the travel industry, the summer of 2023 warmed up the travel sector, especially due to the ebbing pandemic and the return of seasonality. It marks a significant improvement over an already buoyant Summer 2022, as more Americans increasingly set to take a leisure vacation this year (read: Play "Revenge Travel" with These ETFs).

Direxion Daily Transportation Bull 3X Shares (TPOR - Free Report) – Up 15.5%

The U.S. economy grew at a 2% annualized pace in the first quarter, according to a final revision to the figure released Thursday. That was way higher than the previous estimate of 1.3% and the 1.4% Dow Jones consensus forecast. Such data reveals higher economic activities in the U.S. economy, which, in turn, probably boosted the transportation stocks.

MicroSectors Oil & Gas Exp. & Prod. 3x Leveraged ETN (OILU - Free Report) – Up 14.5%

The WTI crude oil prices gained 1.3% last week. This happened because Saudi Arabia - the world's largest oil producer – will commence voluntary crude oil output cuts which are set to kick in this month, starting from July 1, amid a tighter market which is currently reeling under pressure emanated from global growth slowdown and higher rates. This has boosted this energy ETFs.


 

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