ETFs
5 Leveraged ETFs That Gained Double Digits in June
Wall Street saw a strong rally in June, supported by the continued boom in artificial intelligence (AI). For the month, the Nasdaq and the S&P 500 rose nearly 6.7% and 4.7%, respectively, while the Dow Jones gained 2.8%.
Here we highlight a number of top-performing leveraged equity ETFs that posted double-digit gains in June. These include: ETF T-REX 2X Long NVIDIA Daily Target NVDX, ETF T-REX 2X Long Apple Daily Target AAPX, Actions Direxion Daily Concentrated Qs Bull 2X QQQU, GraniteShares 1.75x Long TSLA Daily ETF TSLR, and GraniteShares ETF 2x Long AMZN Daily AMZZ. These funds will continue to be investor darlings, at least in the short term, provided sentiments remain bullish.
Leveraged ETFs provide multiple exposures (2X or 3X) to the daily performance of the underlying index. These funds use various investment strategies, such as the use of swaps, futures and other derivative instruments to achieve their objectives.
The S&P 500 rose above the 5,500 level for the first time last week after hitting the 5,400 threshold earlier this month and 5,300 last month, highlighting strong sentiment. Technology remained the best-performing sector in June (read: 5 Tech Stocks Powering the S&P 500 ETF This Year).
NVIDIA (NVDA) took a historic step to become the world’s most valuable company, surpassing Microsoft (MSFT) earlier this month, but failed to hold on to its top spot. Now, all three stocks — NVIDIA, Apple (AAPL), and Microsoft — are in the race to become the world’s most valuable company and have reached a market cap of $4 trillion on the back of growing enthusiasm for AI capabilities. E-commerce giant Amazon.com Inc. (AMZN) also surpassed $2 trillion in market cap for the first time in the latest trading session (read: Tech ETFs Faceoff: Apple Vs. Microsoft).
At the latest FOMC meeting earlier this month, U.S. policymakers scheduled just one rate cut for this year and indicated four cuts in 2025. Low rates are generally favorable for stocks because they reduce the cost borrowing, often necessary to finance the expansion of stock markets. businesses. Lower rates generally reduce the attractiveness of fixed-income investments like bonds, prompting investors to seek higher returns in stock markets.
Focus on ETFs
T-REX 2X Long NVIDIA Daily Target ETF (NVDX) – Up 30.7%
The T-REX 2X Long NVIDIA Daily Target ETF seeks to amplify (200%) the daily performance of NVIDIA. It has assets under management of $703.3 million and an expense ratio of 1.05%. The T-REX 2X Long NVIDIA Daily Target ETF trades in an average daily volume of 926,000 shares.
T-REX 2X Long Apple Daily Target ETF (AAPX) – Up 24.8%
The T-REX 2X Long Apple Daily Target ETF seeks to amplify (200%) the daily performance of publicly traded Apple common stock. It has managed $8.5 million in assets and has an expense ratio of 1.05%. AAPX trades an average daily volume of 34,000 shares.
Direxion Daily Concentrated Qs Bull 2X (QQQU) Shares – Up 19.7%
The Direxion Daily Concentrated Qs Bull 2X shares offer twice the performance of the Indxx Front of the Q index, which tracks the performance of the seven largest companies listed on the NASDAQ. It has accumulated $9.3 million in its asset base and charges a 1.07% annual fee. The Direxion Daily Concentrated Qs Bull 2X shares trade in an average daily volume of 9,000 shares.
GraniteShares 1.75x Long TSLA Daily ETF (TSLR) – Up 18.7%
The GraniteShares 1.75x Long TSLA Daily ETF offers 1.75 times (170%) the daily percentage change of Tesla common stock (TSLA), charging a 1.50% annual fee. It has amassed $29.9 million in assets and trades an average daily volume of 448,000 shares.
GraniteShares 2x Long AMZN Daily ETF (AMZZ) – Up 18.7%
The GraniteShares 2x Long AMZN Daily ETF offers twice (200%) the daily percentage change of Amazon common stock. It has amassed $15.4 million in its asset base and charges 1.15% fees per year to investors (read: ETFs in the spotlight as Amazon joins the $2 trillion club for first time).
The story continues
Conclusion
Investors should note, however, that these products are extremely volatile and are only suitable for short-term traders. In addition, daily rebalancing, when combined with leverage, can cause these products to diverge significantly from their expected long-term performance figures (see: all leveraged equity ETFs here).
Still, for ETF investors optimistic about the stock market in the near term, any of the above products may be an attractive choice. Obviously, a short-term long position could be attractive to those who have a high risk tolerance and believe that the trend is the friend in this area of the investing world.
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GraniteShares 2x Long TSLA Daily ETF (TSLR) : ETF Research Reports
T-REX 2X Long NVIDIA Daily Target ETF (NVDX): ETF Research Reports
T-REX 2X Long Apple Daily Target ETF (AAPX): ETF Research Reports
Direxion Daily Concentrated Qs Bull 2X (QQQU) Actions: ETF Research Reports
GraniteShares 2x Long AMZN Daily ETF (AMZZ): ETF Research Reports