Yahoo Finance 5 Leveraged ETFs That Have Gained in Double Digits in June
Wall Street has been on a solid rally in June, buoyed by the continued artificial intelligence (AI) boom. In the month, the Nasdaq and S&P 500 have risen nearly 6.7% and 4.7%, respectively, while the Dow has gained 2.8%.
Here, we highlight a bunch of the best-performing leveraged equity ETFs that have gained in double digits in June. These include T-REX 2X Long NVIDIA Daily Target ETF NVDX, T-REX 2X Long Apple Daily Target ETF AAPX, Direxion Daily Concentrated Qs Bull 2X Shares QQQU, GraniteShares 1.75x Long TSLA Daily ETF TSLR, and GraniteShares 2x Long AMZN Daily ETF AMZZ. These funds will continue to be investors’ darlings, at least in the near term, provided the sentiments remain bullish.
Leveraged ETFs provide multiple exposures (2X or 3X) to the daily performance of the underlying index. These funds employ various investment strategies, such as the use of swaps, futures contracts and other derivative instruments to accomplish their objectives.
The S&P 500 topped the 5,500 level for the first time last week after hitting the 5,400 threshold earlier this month and 5,300 last month, underscoring strong confidence. Technology remained the best-performing sector in June (read: 5 Technology Stocks Powering S&P 500 ETF This Year).
In a historic milestone, NVIDIA (NVDA) rallied to become the world's most valuable company, surpassing Microsoft (MSFT) early this month, but was unable to sustain its #1 position. Now, the three stocks — NVIDIA, Apple (AAPL) and Microsoft — are in a race to become the world’s most valuable company and hit a market capitalization of $4 trillion on surging enthusiasm over AI capabilities. E-commerce giant Amazon.com Inc. (AMZN) also topped $2 trillion in market cap for the first time in the latest trading session (read: Tech ETFs Faceoff: Apple Vs. Microsoft).
In the last FOMC meeting early in the month, U.S. policymakers penciled in just one rate cut for this year and indicated four cuts in 2025. Low rates are generally favorable for stocks as they reduce the cost of borrowing, often needed to finance the expansion of companies. Lower rates typically reduce the attractiveness of fixed-income investments like bonds, leading investors to seek higher returns in the equity markets.
ETFs in Focus
T-REX 2X Long NVIDIA Daily Target ETF (NVDX) – Up 30.7%
T-REX 2X Long NVIDIA Daily Target ETF seeks to magnify (200%) the daily performance of the NVIDIA. It has AUM of $ 703.3 million and an expense ratio of 1.05%. 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%
T-REX 2X Long Apple Daily Target ETF seeks to magnify (200%) the daily performance of the publicly traded common stock of Apple. It has been able to manage assets worth $8.5 million and has an expense ratio of 1.05%. AAPX trades in an average daily volume of 34,000 shares.
Direxion Daily Concentrated Qs Bull 2X Shares (QQQU) – Up 19.7%
Direxion Daily Concentrated Qs Bull 2X Shares offers two times the performance of the Indxx Front of the Q Index, which tracks the performance of the seven largest NASDAQ listed companies. It has amassed $9.3 million in its asset base and charges 1.07% in annual fees. Direxion Daily Concentrated Qs Bull 2X Shares trades in an average daily volume of 9,000 shares.
GraniteShares 1.75x Long TSLA Daily ETF (TSLR) – Up 18.7%
GraniteShares 1.75x Long TSLA Daily ETF offers 1.75 times (170%) the daily percentage change of the common stock of Tesla (TSLA), charging 1.50% in annual fees. It has amassed $29.9 million in its asset base and trades in an average daily volume of 448,000 shares.
GraniteShares 2x Long AMZN Daily ETF (AMZZ) – Up 18.7%
GraniteShares 2x Long AMZN Daily ETF offers two times (200%) the daily percentage change of the common stock of Amazon. It has gathered $15.4 million in its asset base and charges 1.15% in fees per year from investors (read: ETFs in Focus as Amazon Joins $2T Club for the First Time).
Bottom Line
As a caveat, investors should note that these products are extremely volatile and suitable only for short-term traders. Additionally, the daily rebalancing — when combined with leverage — may make these products deviate significantly from the expected long-term performance figures (see: all the Leveraged Equity ETFs here).
Still, for ETF investors bullish on the stock market for the near term, either of the above products can be an interesting choice. Clearly, a near-term long could be intriguing for those with high-risk tolerance and a belief that the trend is the friend in this corner 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 Shares (QQQU): ETF Research Reports
GraniteShares 2x Long AMZN Daily ETF (AMZZ): ETF Research Reports
