5 Best Inverse/Leveraged ETFs of Last Week

Wall Street was downbeat last week. Each of the key equity gadgets — the S&P 500 (down 0.7%), the Dow Jones (down 0.01%), the Nasdaq Composite (down 1.6%) and the Russell 2000 (down 1.8%) — lost last week. Rising rate worries and recessionary fears were the key concerns.

There have been a lot of good news for Chinese markets last week. The dual tailwind of easing tensions between the United States and China as well as the easing of zero-COVID restrictions triggered a huge rally (read: Bet on China ETFs on a Solid Turnaround).

Investors now see warmer ties between the world’s two largest economies after the G20 (Group of Twenty) summit, reducing delisting risks for hundreds of New York-listed Chinese firms and boosting the outlook for trade. Additionally, China’s supportive measures to its struggling real estate market added to the strength.

There were ups and downs in the semiconductor space too. Warren Buffett’s Berkshire Hathaway Inc. (BRK-B) grabbed a stake of about $5 billion in Taiwan Semiconductor Manufacturing Co. TSM, as the veteran investor thinks the world’s leading chipmaker has bottomed out after a selloff of more than $250 billion.

Shares of Taiwan Semiconductor Manufacturing Company Limited shot up last week and acted as a cornerstone for the entire semiconductor space. However, Nvidia’s downbeat Q3 earnings finally weighed on the semiconductor space. Hence, VanEck Semiconductor ETF SMH added 0.3% past week (read: Should You Buy Taiwan Semiconductor-Heavy ETFs Now?).

Against this backdrop, below we highlight a few top-performing inverse/leveraged ETFs of last week.

ETFs in Focus

CSI China Internet Index Bull 2X Direxion CWEB – Up 14.5%

The underlying CSI Overseas China Internet Index includes securities primarily listed outside of China, have been listed for at least three months and meet one of the three following criteria: the company is incorporated in mainland China; the operation center for the company is in mainland China; or at least 50% of the revenue from the company is from mainland China. The expense ratio of 1.32%.

Ultra Bloomberg Natural Gas ETF BOIL – Up 14.1%

The Bloomberg Natural Gas Subindex is intended to reflect the natural gas segment of the commodities market. The index consists of futures contracts on natural gas. The fund charges 95 bps in fees.

S&P Biotech Bear 3X Direxion LABD – Up 13.9%

The underlying S&P Biotechnology Select Industry Index is designed to measure the performance of a sub-industry or group of sub-industries determined based on the Global Industry Classification Standards (GICS). The expense ratio of LABD is 1.0%.

Ultrashort Bloomberg Crude Oil ETF SCO – Up 12.9%

The underlying Bloomberg Commodity Balanced WTI Crude Oil Index is intended to reflect the crude oil segment of the commodities market. The index consists of futures contracts on crude oil only. The fund charges 95 bps in fees.

Bank of Montreal Microsectors Travel -3X Inverse FYLD – Up 11.2%

The underlying MerQube MicroSectors U.S. Travel Index is a total return index that tracks the stock prices of U.S. domiciled and listed securities that are materially engaged in specified segments of the travel industry. The fund charges 59 bps in fees.

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Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report
 
VanEck Semiconductor ETF (SMH): ETF Research Reports
 
ProShares UltraShort Bloomberg Crude Oil (SCO): ETF Research Reports
 
Direxion Daily S&P Biotech Bear 3X Shares (LABD): ETF Research Reports
 
Cambria Foreign Shareholder Yield ETF (FYLD): ETF Research Reports
 
ProShares Ultra Bloomberg Natural Gas (BOIL): ETF Research Reports
 
Direxion Daily CSI China Internet Index Bull 2X Shares (CWEB): ETF Research Reports
 
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