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The biggest hurdle facing Wall Street has abated as of now with the U.S.-China temporary trade truce. The United States has agreed to temporarily slash tariffs on Chinese goods from 145% to 30%, while China will lower its retaliatory duties on U.S. goods from 125% to 10%. The temporary reduction in rates will run for 90 days.
The deal has sparked a frenzy in the stock market. The S&P 500 rose nearly 3.3% to the highest level since March 3 while the Dow Jones gained 2.8%. The tech-heavy Nasdaq Composite Index skyrocketed 4.3%. While the rally has been broad-based, the tech sector has been the biggest winner (read: ETFs on the Move Post U.S.-China Trade Deal).
Investors took advantage of this dramatic surge through leveraged ETFs. These funds seek to register big gains in a short span. We highlight a bunch of the best-performing leveraged ETFs from different corners of the market that piled up heavy gains yesterday. These include Direxion Daily Semiconductor Bull 3x Shares SOXL, Direxion Daily Transportation Bull 3X Shares TPOR, Direxion Daily Retail Bull 3X Shares RETL, Daily S&P 500 High Beta Bull 3X Shares HIBL and Direxion Daily Consumer Discretionary Bull 3X Shares WANT.
Leveraged ETFs provide multiple exposure (2X or 3X) to the daily performance of the underlying index, making them a popular choice for investors looking to capitalize on short-term market moves without engaging in derivatives or futures. These offer a way to capture the whiplash of sentiment-driven markets.
ETFs That Gained
Direxion Daily Semiconductor Bull 3x Shares (SOXL) – Up 21.4%
Direxion Daily Semiconductor Bull 3x Shares targets the semiconductor corner of the technology sector with three times leveraged exposure to the NYSE Semiconductor Index. It has amassed about $10 billion in its asset base, while charging 72 bps in fees per year. Volume is good as it exchanges 292.4 million shares per day on average.
Direxion Daily Transportation Bull 3X Shares (TPOR) – Up 19.6%
Direxion Daily Transportation Bull 3X Shares targets the transportation sector and seeks to deliver three times the daily performance of the S&P Transportation Select Industry FMC Capped Index. It has AUM of $14.7 million and charges 95 bps in fees and expenses. Direxion Daily Transportation Bull 3X Shares trades in modest volumes of about 33,000 shares per day.
Direxion Daily Retail Bull 3X Shares (RETL) – Up 16.9%
Direxion Daily Retail Bull 3X Shares offers three times leveraged exposure to the S&P Retail Select Industry Index. Direxion Daily Retail Bull 3X Shares has amassed $36.9 million in its asset base and charges 92 bps in fees per year. It exchanges around 743,000 shares a day on average (read: 5 Sector ETFs to Make the Most of the U.S.-China Trade Deal).
Daily S&P 500 High Beta Bull 3X Shares (HIBL) – Up 16.4%
Daily S&P 500 High Beta Bull 3X Shares offers three times exposure to the performance of the S&P 500 High Beta Index. The index selects 100 securities from the S&P 500 Index that have the highest sensitivity to market movements, or “beta,” over the past 12 months. Daily S&P 500 High Beta Bull 3X Shares has garnered $51.2 million in its asset base and trades in an average daily volume of 353,000 shares. The fund charges 95 bps in fees per year from its investors.
Direxion Daily Consumer Discretionary Bull 3X Shares (WANT) – Up 15.2%
Direxion Daily Consumer Discretionary Bull 3X Shares offers leveraged exposure to the consumer discretionary sector. It provides three times exposure to the Consumer Discretionary Select Sector Index, charging 95 bps in annual fees. Direxion Daily Consumer Discretionary Bull 3X Shares has an AUM of $18.7 million and an average daily volume of 36,000 shares.