Leveraged ETFs: The What
There’s always more to know when it comes to investing. Leveraged ETFs are a relatively new financial tool that, while somewhat complex and high risk, can be extremely advantageous if used correctly.
A leveraged ETF is a fund that is designed to track a specific index while simultaneously multiplying its returns. Using a combination of derivatives and debt, leveraged ETFs attempt to maintain a constant multiplier, most commonly 2x or 3x the returns of the underlying index.
Investors most commonly use leveraged ETFs when there is an all but certain change in market conditions. Because they are a high risk and high cost investment vehicle, they are mostly used over short term spans with high certainty.
Leveraged ETFs exist for the entire investment spectrum, from 2x Bull S&P 500 ETFs to 3x Bear Natural Gas funds. Through these funds, one can speculate on bonds, commodities, currencies, real estate, stocks, and more. Today, I’ll highlight some funds to watch in each major category of leveraged ETFs.
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I’ve broken the following ETFs into categories according to which type of assets they leverage. Each group contains notable funds that stand out in Total Assets, Year to Date return, or Average Volume. Click on the ticker symbol to trade on Wall Street Survivor, and click on the full name of each fund to see more data.
Most Active Leveraged Equity ETFs
|Direxion Daily Junior Gold Miners Index Bull 3x Shares||JNUG||Equity – Financial||3x||Bullish|
|Direxion Daily Gold Miners Bull 3X Shares||NUGT||Equity – Financial||3x||Bullish|
|ProShares UltraPro QQQ||TQQQ||Equity – Financial||3x||Bullish|
|Direxion Daily Brazil Bull 3X Shares||BRZU||Equity – Financial||3x||Bullish|
|ProShares UltraPro S&P 500||UPRO||Equity – Financial||3x||Bullish|
|ProShares UltraPro Short QQQ||SQQQ||Equity – Financial||3x||Bearish|
|Direxion Daily Small Cap Bear 3X Shares||TZA||Equity – Financial||3x||Bearish|
|Direxion Daily S&P Oil & Gas Exploration & Production Bear 3x Shares||DRIP||Equity – Financial||3x||Bearish|
|ProShares UltraPro Short S&P 500||SPXU||Equity – Financial||3x||Bearish|
|ProShares UltraPro Short Dow30||SDOW||Equity – Financial||3x||Bearish|
DUST: Yahoo Finance
Most Active Leveraged Commodity ETFs
|VelocityShares 3x Long CrudeETN||UWTI||Commodity – Oil||3x||Bullish|
|VelocityShares 3x Long Silver ETN||USLV||Commodity – Silver||3x||Bullish|
|VelocityShares 3x Long Crude Oil ETN||UWT||Commodity – Oil||3x||Bullish|
|VelocityShares 3x Long Natural Gas||UGAZ||Commodity – Natural Gas||3x||Bullish|
|VelocityShares 3x Long GoldETN||UGLD||Commodity – Gold||3x||Bullish|
|VelocityShares 3x Inverse Crude Oil ETN||DWT||Commodity – Oil||3x||Bearish|
|VelocityShares 3x Inverse Natural Gas||DGAZ||Commodity – Natural Gas||3x||Bearish|
|VelocityShares 3x Inverse Crude ETN||DWTI||Commodity – Oil||3x||Bearish|
|ProShares UltraPro 3x Short Crude Oil ETF||OILD||Commodity – Oil||3x||Bearish|
|VelocityShares 3x Inverse Silver ETN||DSLV||Commodity – Silver||3x||Bearish|
Leveraged Bond ETFs
|Direxion Daily 20-Year Treasury Bull 3X||TMF||Bond||3x||Bullish|
|DB 3x Japanese Govt Bond Futures ETN||JGBT||Bond||3x||Bullish|
|DB 3x Italian Treasury Bond Futures ETN||ITLT||Bond||3x||Bullish|
|Direxion Daily 20-Year Treasury Bear 3X||TMV||Bond||3x||Bearish|
|UltraPro Short 20+ Year Treasury||TTT||Bond||3x||Bearish|
|DB 3x Short 25+ Year Treasury Bond ETN||SBND||Bond||3x||Bearish|
The above ETFs are by far the most common classes of leveraged funds. So check them out and figure out how each one could help you maximize your portfolio profits! If you’re interested in more unique funds, here are a few more to cut your teeth on!
Leveraged Currency ETFs
- EUO– ProShares UltraShort Euro: Highest Total Assets ($170,540,000)
- DAUD– VelocityShares Daily 4x Long USD vs AUD ETN: Highest YTD Return (24.59%)
- YCS– ProShares UltraShort Yen: Second highest in Avg. Volume and Total Assets
Leveraged Real Estate ETFs
- MORL– ETRACS Monthly Pay 2xLeveraged Mortgage REIT ETN: Highest Total Assets ($481,000,000)
- URE– ProShares Ultra Real Estate: Highest YTD Return (3.23%)
- DRN– Direxion Daily Real Estate Bull 3x Shares: Second in Avg. Volume and YTD Return