6 Best Performing Leveraged ETFs Of September


After an alarming start to September, Wall Street has extended its longest bull run in history with the S&P 500 and Dow Jones hitting new all-time highs last week. The optimism was buoyed by a booming economy and strong corporate earnings.

Additionally, the energy sector has provided a huge boost to the stock market lately on rising oil prices. The Fed has raised interest rates for the third time this year and signaled its gradual path for its future rates hikes. A rising rate scenario indicates a strengthening economy, which is spurring growth in the stock market.

However, ongoing troubles in the emerging markets, round of tech sell-off and escalating U.S.-China trade war fears have dampened investors’ mood in the month. In particular, President Donald Trump has imposed a new tariff of 10% on $200 billion worth of Chinese goods, effective Sep 24. The tariff will be increased to 25% effective Jan 1. In retaliation, China slapped a tariff of 10% on more than 5,000 American products worth $60 billion.

The roller-coaster ride has resulted in huge demand for leveraged or leveraged inverse ETFs as investors seek to register big gains in a short span. These products either create a multiple exposure (i.e. 2x or 3x) or inverse multiple exposure to the daily performance of the underlying index by employing various investment strategies such as swaps, futures contracts and other derivative instruments.

Below, we have highlighted six U.S.-focused ETFs that crushed the market in September with solid returns in a short period. Moreover, these funds will continue to be investors’ favorites if sentiments remain the same.

Direxion Daily Regional Banks Bear 3x Shares (WDRW – Free Report) – Up 15.1%

This fund seeks to deliver thrice the inverse return of the S&P Regional Banks Select Industry Index, charging 95 bps in fees per year. WDRW has accumulated $2.5 million in its asset base and trades in a paltry volume of around 1,000 shares a day on average. The fund is up 15.1% this month.

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