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Wall Street delivered a moderate performance last week, with the S&P 500 adding 1.4%, the Dow Jones advancing 1.6% and the Nasdaq Composite gaining 1.5%, respectively. U.S. stocks closed mixed on Friday as the rate-cut euphoria faded.
On Sept. 18, 2024, the Federal Reserve implemented its first interest rate cut in four years, reducing the benchmark rate by half a percentage point (50 basis points). This move comes in response to cooling inflation and a slowdown in the labor market.
The central bank’s preferred inflation measure shows that it is running at 2.5%, still above the 2% target but well below the previous peaks. The Federal Open Market Committee (FOMC) reduced the key overnight borrowing rate to a range of 4.75-5% (read: Fed Cuts Rates by 50 Basis Points: Sector ETFs to Play).
The latest University of Michigan consumer sentiment index climbed 1.6% to 69 from 67.9 in August. Sentiment is now about 40% higher than its June 2022 low, even though consumers remain cautious ahead of the November presidential election (read: ETFs to Tap on Improving Consumer Sentiment).
The Bank of Japan, which was tightening its policy unlike other central banks, also kept its benchmark interest rate steady at around 0.25% — the highest since 2008 — at the conclusion of a two-day meeting on Friday. China also kept its key lending rates steady, with the one-year loan prime rate at 3.35% and the five-year LPR at 3.85% (read: Time for Global Equities ETFs?).
Against this backdrop, below we highlight a few winning leveraged exchange-traded fund (ETF) areas of last week.
Best-Performing Leveraged ETFs in Focus
Direxion Daily FTSE China Bull 3X Shares (YINN - Free Report) – Up 14.8%
Concerns over China’s economic challenges remain rife as the year 2024 reaches its final three months. In recent years, investing in Chinese stocks has proven extremely challenging for bullish investors. Despite the prevalent downbeat sentiment, not everyone shares a gloomy outlook on China’s future. Some high-profile investors have maintained their confidence in China as the economy is showing signs of improvement (read: Time to Buy China ETFs Following Billionaire Investors?).
GraniteShares 2x Long META Daily ETF (FBL - Free Report) – Up 14.4%
Meta stock gained 7% last week. As a result, the leveraged Meta ETF GraniteShares 2x Long META Daily ETF, which seeks daily investment results, before fees and expenses, of 2 times the daily percentage change of the common stock of Meta Platforms Inc., jumped last week. The expense ratio of the ETF is 1.15%.
Defiance Daily Target 2x Long Uranium ETF (URAX - Free Report) – Up 14.1%
The Defiance Daily Target 2x Long Uranium ETF seeks daily leveraged investment results of two times the daily percentage change in the share price of the Global X Uranium ETF. The United States and 20 other countries announced plans to triple their nuclear power by 2050, which should boost the demand for uranium. China leads the nuclear energy bets, currently building 22 of 58 global reactors, and Japan restarted projects to build reactors. This has boosted the demand for uranium.
The MicroSectors Travel 3x Leveraged ETN is linked to a three-times leveraged participation in the performance of the MerQube MicroSectors U.S. Travel Index, compounded daily, minus the applicable fees. The ETN charges 95 bps in fees.
Direxion Daily Dow Jones Internet Bull 3X Shares (WEBL - Free Report) – Up 12.0%
The Direxion Daily Dow Jones Internet Bull 3X Shares seek daily investment results, before fees and expenses, of 300% of the performance of the Dow Jones Internet Composite Index. Due to the Fed rate cut, growth investment areas like Internet soared.
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Best Leveraged ETFs of Last Week
Wall Street delivered a moderate performance last week, with the S&P 500 adding 1.4%, the Dow Jones advancing 1.6% and the Nasdaq Composite gaining 1.5%, respectively. U.S. stocks closed mixed on Friday as the rate-cut euphoria faded.
On Sept. 18, 2024, the Federal Reserve implemented its first interest rate cut in four years, reducing the benchmark rate by half a percentage point (50 basis points). This move comes in response to cooling inflation and a slowdown in the labor market.
The central bank’s preferred inflation measure shows that it is running at 2.5%, still above the 2% target but well below the previous peaks. The Federal Open Market Committee (FOMC) reduced the key overnight borrowing rate to a range of 4.75-5% (read: Fed Cuts Rates by 50 Basis Points: Sector ETFs to Play).
The latest University of Michigan consumer sentiment index climbed 1.6% to 69 from 67.9 in August. Sentiment is now about 40% higher than its June 2022 low, even though consumers remain cautious ahead of the November presidential election (read: ETFs to Tap on Improving Consumer Sentiment).
The Bank of Japan, which was tightening its policy unlike other central banks, also kept its benchmark interest rate steady at around 0.25% — the highest since 2008 — at the conclusion of a two-day meeting on Friday. China also kept its key lending rates steady, with the one-year loan prime rate at 3.35% and the five-year LPR at 3.85% (read: Time for Global Equities ETFs?).
Against this backdrop, below we highlight a few winning leveraged exchange-traded fund (ETF) areas of last week.
Best-Performing Leveraged ETFs in Focus
Direxion Daily FTSE China Bull 3X Shares (YINN - Free Report) – Up 14.8%
Concerns over China’s economic challenges remain rife as the year 2024 reaches its final three months. In recent years, investing in Chinese stocks has proven extremely challenging for bullish investors. Despite the prevalent downbeat sentiment, not everyone shares a gloomy outlook on China’s future. Some high-profile investors have maintained their confidence in China as the economy is showing signs of improvement (read: Time to Buy China ETFs Following Billionaire Investors?).
GraniteShares 2x Long META Daily ETF (FBL - Free Report) – Up 14.4%
Meta stock gained 7% last week. As a result, the leveraged Meta ETF GraniteShares 2x Long META Daily ETF, which seeks daily investment results, before fees and expenses, of 2 times the daily percentage change of the common stock of Meta Platforms Inc., jumped last week. The expense ratio of the ETF is 1.15%.
Defiance Daily Target 2x Long Uranium ETF (URAX - Free Report) – Up 14.1%
The Defiance Daily Target 2x Long Uranium ETF seeks daily leveraged investment results of two times the daily percentage change in the share price of the Global X Uranium ETF. The United States and 20 other countries announced plans to triple their nuclear power by 2050, which should boost the demand for uranium. China leads the nuclear energy bets, currently building 22 of 58 global reactors, and Japan restarted projects to build reactors. This has boosted the demand for uranium.
MicroSectors Travel 3x Leveraged ETN (FLYU - Free Report) – Up 13.7%
The MicroSectors Travel 3x Leveraged ETN is linked to a three-times leveraged participation in the performance of the MerQube MicroSectors U.S. Travel Index, compounded daily, minus the applicable fees. The ETN charges 95 bps in fees.
Direxion Daily Dow Jones Internet Bull 3X Shares (WEBL - Free Report) – Up 12.0%
The Direxion Daily Dow Jones Internet Bull 3X Shares seek daily investment results, before fees and expenses, of 300% of the performance of the Dow Jones Internet Composite Index. Due to the Fed rate cut, growth investment areas like Internet soared.