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Wall Street delivered a mixed performance last week with the S&P 500 (up 0.5%) and the Nasdaq Composite (up 1.6%) eking out moderate gains while the Dow Jones (down 0.3%) and the Russell 2000 (down 2.2%) trading in the red. While rising rate worries amid fears of a cooling economy weighed on the stock market, an upbeat September jobs report boost key U.S. equity gauges in the final trading day of the week.
The U.S. economy added 336,000 jobs in September 2023, well above an upwardly revised 227,000 in August, and beating market forecasts of 170,000. It marked the strongest job gain in eight months and well above the 70,000-100,000 needed per month to maintain the growth in the working-age population, per tradingeconomics.
U.S. benchmark treasury yield started the week at 4.69%, hit a high of 4.81% on Oct 3 and ended the week at 4.78%. Since the jobs data came in at sturdy, the Fed might enact one more rate hike in November. But key U.S. equity gauges ruled out the worries regarding more restrictive Fed policies and surged.
Against this backdrop, below we highlight a few inverse/leveraged ETF winners of last week.
ETFs in Focus
Inverse/Leveraged Treasury
Direxion Daily 20+ Year Treasury Bear 3x Shares (TMV - Free Report) – Up 33.3%
ProShares UltraPro Short 20+ Year Treasury (TTT - Free Report) – Up 32.7%
Growth sectors like biotech underperform in a rising rate environment. The fact explains the rally in inverse/leveraged biotech ETF LABD (read: 5 Best Leveraged-Inverse ETFs of September).
Inverse/Leveraged Airlines
MAX Airlines -3X Inverse Leveraged ETNs (JETD - Free Report) – Up 30.8%
Airlines underperformed last week, probably due to higher rates and increased fuel costs. Notably, U.S. Airlines’ August 2023 fuel cost per gallon rose 13.8% from July 2023.
Inverse/Leveraged High-Beta
Direxion Daily S&P 500 High Beta Bear 3X Shares (HIBS - Free Report) – Up 27.9%
As risk-on sentiments retreated last week, high-beta ETFs slumped last week, giving a leeway for gains to inverse/leveraged high-beta ETF.
Inverse/Leveraged Real Estate
Direxion Daily Real Estate Bear 3X Shares (DRV - Free Report) – Up 27.1%
This is yet another sector (i.e. real estate) that underperforms in a rising rate environment. The Direxion Daily MSCI Real Estate Bear 3X Shares seek daily investment results, before fees and expenses, of 300% of the inverse of the performance of the Real Estate Select Sector Index.
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Best Inverse/Leveraged ETFs of Last Week
Wall Street delivered a mixed performance last week with the S&P 500 (up 0.5%) and the Nasdaq Composite (up 1.6%) eking out moderate gains while the Dow Jones (down 0.3%) and the Russell 2000 (down 2.2%) trading in the red. While rising rate worries amid fears of a cooling economy weighed on the stock market, an upbeat September jobs report boost key U.S. equity gauges in the final trading day of the week.
The U.S. economy added 336,000 jobs in September 2023, well above an upwardly revised 227,000 in August, and beating market forecasts of 170,000. It marked the strongest job gain in eight months and well above the 70,000-100,000 needed per month to maintain the growth in the working-age population, per tradingeconomics.
U.S. benchmark treasury yield started the week at 4.69%, hit a high of 4.81% on Oct 3 and ended the week at 4.78%. Since the jobs data came in at sturdy, the Fed might enact one more rate hike in November. But key U.S. equity gauges ruled out the worries regarding more restrictive Fed policies and surged.
Against this backdrop, below we highlight a few inverse/leveraged ETF winners of last week.
ETFs in Focus
Inverse/Leveraged Treasury
Direxion Daily 20+ Year Treasury Bear 3x Shares (TMV - Free Report) – Up 33.3%
ProShares UltraPro Short 20+ Year Treasury (TTT - Free Report) – Up 32.7%
As bond yields surged, bond prices slumped as yields and bond prices share inverse relationship. Hence, inverse/leveraged bond ETFs gained last week (read: 5 Leveraged/Inverse ETFs That Gained More Than 40% in Q3).
Inverse/Leveraged Biotech
Direxion Daily S&P Biotech Bear 3x Shares (LABD - Free Report) – Up 32.1%
Growth sectors like biotech underperform in a rising rate environment. The fact explains the rally in inverse/leveraged biotech ETF LABD (read: 5 Best Leveraged-Inverse ETFs of September).
Inverse/Leveraged Airlines
MAX Airlines -3X Inverse Leveraged ETNs (JETD - Free Report) – Up 30.8%
Airlines underperformed last week, probably due to higher rates and increased fuel costs. Notably, U.S. Airlines’ August 2023 fuel cost per gallon rose 13.8% from July 2023.
Inverse/Leveraged High-Beta
Direxion Daily S&P 500 High Beta Bear 3X Shares (HIBS - Free Report) – Up 27.9%
As risk-on sentiments retreated last week, high-beta ETFs slumped last week, giving a leeway for gains to inverse/leveraged high-beta ETF.
Inverse/Leveraged Real Estate
Direxion Daily Real Estate Bear 3X Shares (DRV - Free Report) – Up 27.1%
This is yet another sector (i.e. real estate) that underperforms in a rising rate environment. The Direxion Daily MSCI Real Estate Bear 3X Shares seek daily investment results, before fees and expenses, of 300% of the inverse of the performance of the Real Estate Select Sector Index.