Best-Performing Leveraged ETFs of Last Week

On Sept. 13, 2024, Wall Street surged, marking strong weekly gains as Wall Street raised its expectations for a significant interest rate cut by the Federal Reserve. The S&P 500 gained 0.5%, while the tech-heavy Nasdaq Composite increased 0.7%, both logging their fifth successive day of gains. The Dow Jones Industrial Average added 0.5%, or about 300 points.

For the week, the Nasdaq rose more than 5%, marking its best performance of the year. U.S. semiconductor stocks logged a rally last week.The S&P 500 gained 4%, and the Dow increased by 2%. These gains came amid a volatile market, but the rapid recovery coincided with intensifying debate over interest rate policy.

Interest Rate Cut Expectations Rise

The market’s upward momentum was aided by increasing anticipation of a half-point interest rate cut by the Federal Reserve, which was previously viewed as unlikely. Traders are now assigning a 49% probability to a 50-basis point cut next week, up from just 15% on Sept. 12, 2024.

This shift in expectations was aided by reports from the Financial Times and The Wall Street Journal, suggesting the Fed's decision on Sept. 18 will be closely contested. Former New York Fed President Bill Dudley added to the speculation, stating there is a "strong case" for a deeper rate cut.

Treasury Yields Fall Amid Rate Cut Debate

The yield on the benchmark 10-year Treasury declined to 3.66% on Sept. 13, 2024 from 3.70% recorded on Sept. 9, 2024. The recent fluctuations in Treasury yields reflect ongoing market uncertainty over whether the Fed will opt for a 0.25% or 0.5% rate cut, as concerns over a labor market weakness and recession risks continue to cause volatility.

Best-Performing Leveraged ETFs of Last Week

Against this backdrop, below we highlight a few winning leveraged exchange-traded funds (ETF)s of last week.

Defiance Daily Target 2X Long AVGO ETF AVGX – Up 48.03%

Broadcom Inc (AVGO) jumped 20.8% last week, paving the way for a rally for AVGX.  The Defiance Daily Target 2x Long AVGO ETF seeks daily leveraged investment results of two times the daily percentage change in the share price of Broadcom Inc.

Defiance Daily Target 1.75x Long MSTR ETF MSTX – Up 42.2%

MicroStrategy Inc MSTR gained about 18% last week, benefitting MSTX ETF. The Defiance Daily Target 1.75X Long MSTR ETF seeks daily leveraged investment results of 1.75 the daily percentage change in the share price of MicroStrategy Incorporated.

Defiance Daily Target 2X Long SMCI ETF SMCX – Up 38.1%

Super Micro Computer Inc SMCI advanced 16.4% last week. The Defiance Daily Target 2x Long SMCI ETF seeks daily leveraged investment results of two times the daily percentage change in the share price of Super Micro Computer, Inc.

MicroSectors Gold Miners 3X Leveraged ETN GDXU – Up 36.3%

Gold bullion ETF SPDR Gold Trust GLD gained 3.2% last week. Hence, leveraged gold mining RTF GDXU jumped as mining stocks often benefit more than the underlying metal. The underlying S-Network MicroSectors Gold Miners Index seeks to provide exposure to the performance of the VanEck Vectors Gold Miners ETF and the VanEck Vectors Junior Gold Miners ETF.

GraniteShares 2x Long PLTR Daily ETF PTIR – Up 35.0%

Palantir Technologies Inc PLTR gained 8.8% last week. The GraniteShares 2x Long PLTR Daily ETF seeks daily investment results, before fees and expenses, of 2 times the daily percentage change of the common stock of Palantir Technologies Inc.

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