Wall Street delivered a mixed performance last week. The S&P 500 lost 0.3% last week while the Dow Jones added 0.6%, the Nasdaq slumped 1.9% and the Russell 2000 slumped 1.7%. The slump was led by the increase in bond yields and overvaluation concerns. The U.S. treasury yield increased to 4.16% on Aug 11, 2023 from 4.09% on Aug 7, 2023, having hit a low of 4.00% on Aug 9, 2023.
Inflation in the United States rose for the first time in July after 12 straight months of decline. Investors should note that a pickup in inflation came as it was calculated from a lower base after prices subsided last July. The consumer price index rose 3.2% year over year in July. However, the data fell shy of 3.3% forecast.
The energy sector has also made a strong comeback on oil price surge. This is especially true as oil price surged to the highest level in almost nine months, with U.S. crude rising above $84 per barrel and Brent topping $87 per barrel.
Investors should note that Wall Street has lost momentum since the start of August triggered by the U.S. credit rating downgrade and multiple bank downgrades. The Fed’s hawkish signal, slowing U.S. job market and weak China data added to the woes.
If these were not enough, Moody’s recent credit rating downgrade of some small-and-mid-sized banks has sent ripples through the U.S. banking sector. The downgrade comes as these financial institutions grapple with a complex mix of challenges, from interest rate volatility to asset-liability management risks. Hence, the markets remained edgy.
Against this backdrop, below we highlight a few inverse/leveraged ETFs that won last week.
ETFs in Focus
ProShares Ultra Bloomberg Natural Gas BOIL – Up 20.9%
The ProShares Ultra Bloomberg Natural Gas seeks daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the Bloomberg Natural Gas Subindex. The fund charges 95 bps in fees.
Direxion Daily Semiconductor Bear 3x Shares SOXS – Up 16.3%
The Direxion Daily Semiconductor Bear 3x Shares seeks daily investment results, before fees and expenses, of 300% of the inverse of the performance of the ICE Semiconductor Index. The expense ratio of the fund is 1.02%.
Direxion Daily FTSE China Bear 3X Shares YANG – Up 12.9%
The Direxion Daily FTSE China Bear 3X Shares seeks daily investment results, before fees and expenses, of 300% of the inverse (or opposite) of the performance of the FTSE China 50 Index. The expense ratio of the fund is 1.08%.
MicroSectors Solactive FANG & Innovation -3X Inverse Leveraged ETN BERZ – Up 11.8%
The MicroSectors FANG & Innovation -3x Inverse Leveraged ETN are linked to three times leveraged participation in the inverse performance of the Solactive FANG Innovation Index, compounded daily, minus the applicable fees. The expense ratio of the fund is 0.95%.
AXS 1.25X NVDA Bear Daily ETF NVDS – Up 11.6%
The AXS 1.25X NVDA Bear Daily ETF seeks daily investment results, before fees and expenses, that correspond to 1.25 times the inverse of the daily performance of the common shares of NVIDIA Corporation. The expense ratio of the fund is 1.15%.
ProShares Ultra Bloomberg Natural Gas (BOIL): ETF Research Reports
Direxion Daily Semiconductor Bear 3X Shares (SOXS): ETF Research Reports
Direxion Daily FTSE China Bear 3X Shares (YANG): ETF Research Reports
MicroSectors FANG & Innovation -3X Inverse Leveraged ETN (BERZ): ETF Research Reports
AXS 1.25X NVDA Bear Daily ETF (NVDS): ETF Research Reports
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