Leveraged ETFs Surge as Crypto and Oil Shift
Last week’s top-performing leveraged and inverse ETFs saw significant gains, with some funds moving quickly due to leverage. This ETF aims to provide 2x long daily price performance of Riot Platforms, Inc., which focuses on cryptocurrencies and cryptocurrency mining computers. The gains were driven by a massive AI data center lease agreement, a strong quarterly earnings beat, and the company’s repositioning as a digital infrastructure player.
Another top performer was the MicroSectors U.S. Big Oil -3 Inverse Leveraged ETN, which provides inverse exposure to the performance of U.S. oil, gas, and consumable fuels. This ETF gained nearly 49% as U.S. crude oil prices declined due to shifting political expectations and signals of diplomatic restraint regarding Iran. The MicroSectors Energy 3X Inverse Leveraged ETNs and the MicroSectors Oil & Gas Exp. & Prod. -3x Inverse Leveraged ETN also made the list, with over 45% and weekly gains, respectively. The MicroSectors Gold Miners 3X Leveraged ETN ranked amongst the leveraged funds with ~42% returns last week, driven by a sharp drop in crude oil prices and a weaker U.S. dollar.
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The Direxion Daily Semiconductor Bear 3x ETF, which inversely tracks the PHLX Semiconductor Index, topped the list with 36%+ returns. U.S. semiconductor and other AI-focused stocks suffered a sharp sell-off due to political shifts and concerns over AI data-center buildout pace and stretched valuations. The Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 2X ETF and the MicroSectors -3x Short Semiconductor ETN also made the list, with the latter achieving over 32% weekly gains. The T-REX 2X Long RBLX Daily Target ETF aimed to provide 2x leveraged exposure to the daily price movement of Roblox Corp. stock, and was one of the levered ETFs on the list.
The upward movement in Roblox shares was driven by a sharp relief rally following a narrower-than-expected quarterly loss and positive analyst coverage. The APPX – Tradr 2X Long APP Daily ETF was present on the list with ~169% weekly gains, driven by exceptional third-quarter financial results and a robust fourth-quarter outlook. The RIOX, Defiance Daily Target 2X Long RIOT ETF and the NRGD, MicroSectors U.S. Big Oil -3 Inverse Leveraged ETN were also featured, with ~61% and ~49% weekly gains, respectively. For more news, information, and analysis, visit the Leveraged & Inverse Content Hub.
