Top Leveraged ETFs Right Now

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Contributor, Benzinga
April 17, 2020

Depending on the type of trader you are, the stock market can offer you a variety of trading options to accommodate your financial goals. If your investment strategy involves high stakes trading, you can consider putting your money into leveraged ETFs.

Leveraged ETFs are specially designed securities for speculative traders having a high-risk profile. These ETFs use borrowed money or derivatives such as options and futures to amplify the returns from underlying indices by up to 200% (2:1 ratio) or 300% (3:1 ratio). 

For example, the ProShares Ultra S&P 500 (NASDAQ: SSO) ETF tracks the S&P 500 Index at 200% (2:1 ratio). If you bought a single share of ProShares Ultra S&P 500 ETF at $100 and the underlying S&P 500 index rose by $1 (1%), you would get a return of $2 (2%) and your total asset value would be $102. 

On the other hand, if the S&P 500 Index fell by $2 (2%), you would lose $4 (2%) and your total asset value would be $96. The value of leveraged ETFs get reset every day at the end of the trading session.  

Leveraged ETFs Biggest Gainers and Losers

Here’s the latest stock quotes of leveraged ETFs to help you stay on top of the biggest gainers and the worst losers on the stock exchange. 

Stock Movers

Premarket Leveraged ETFs

You can improve your price predictions of leveraged ETFs before the stock exchange opens with these live updates.  

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Aftermarket Leveraged ETFs

Here’s the most recent price updates on leveraged ETFs to help you trade after the stock exchange is closed. 

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Why Invest in Leveraged ETFs?

Here are the top 3 reasons you should consider investing in leveraged ETFs. 

1. Leveraged ETFs can outperform benchmark indices. 

By the end of 2019, 3 of the major indices had reached massive peaks. NASDAQ Composite Index rose by 36%, S&P 500 rose by 28.5% and Dow Jones rose by 22%. Investing in leveraged ETFs that track these indices could have doubled or even tripled your returns.

Based on your market predictions, you can choose leveraged ETFs with returns ratios that maximize your profits. There are over 200 leveraged ETFs with underlying assets in bonds, commodities, currencies, equities and real estate for you to invest in.   

2. Leveraged ETFs are better for short-term investments. 

You can earn big profits in a short time by investing in leveraged ETFs. Market fluctuations are rampant throughout trading sessions and leveraged ETFs can help you take advantage of daily stock price swings. Volatile market conditions can create exciting investment opportunities for you in this ETF sector.   

Leveraged ETFs are reset everyday to rebalance their leverage. While the magnified return rates can yield higher profits from a single trade, buying and holding onto leveraged ETFs can increase the chances of undergoing exponential losses.     

3. Investing in leveraged ETFs costs less capital.  

Leveraged ETFs let you achieve your financial goals with less capital. Let’s say your financial goal is to buy a new car that costs $25,000. You could invest in a regular ETF such as Vanguard S&P 500 ETF (NASDAQ: VOO) that tracks the S&P 500 Index. The price of 100 shares of Vanguard S&P 500 ETF at $225 per share would cost you a total of $22,500. When the S&P 500 Index goes up by 11.2%, you can sell all your shares and cash in for a new car. 

Consider the same scenario with a leveraged ETF such as ProShares Ultra S&P 500 (NASDAQ: SSO) that tracks the same index but at a 200% return rate. It would have cost you just half of your capital at $11,250 with a return rate of 222.4% to buy that new car. 

Top 3 Leveraged ETFs by AUM

With leveraged ETFs, you cannot lose more money than you put in. Leveraged ETFs are more suited for daily trades rather than long-term investments. The compounding expenses involved in holding leveraged ETFs such as interest rates, premiums, trade fees and investment management fees can pile up over time and swallow a good chunk of your returns.    

Do your research on the index performance, expense ratios, daily trade volumes, investment management fees, historical returns record and the total assets under management (AUM) before investing in leveraged ETFs. 

Take a look at these leveraged ETFs to get a head start on your trading strategy. 

1. Direxion Daily Junior Gold Miners Index Bull 3x Shares (NASDAQ: JNUG)

$28.80
-0.10[-0.35%]
Last update: 8:00PM (Delayed 15-Minutes)
Get Real Time Here
Open29.590Close28.800
Vol / Avg.1.231M / 1.520MMkt Cap-
Day Range28.730 - 30.03052 Wk Range20.450 - 51.528

Direxion Daily Junior Gold Miners Index Bull 3x Shares tracks the MVIS Global Junior Gold Miners Index with a 300% return on investment. It holds assets in domestic and foreign penny stocks, small-cap and mid-cap companies that generate at least 50% of their revenue from gold or silver mining.

Direxion Daily Junior Gold Miners Index Bull 3x Shares has a high expense ratio of 1.17%. The total AUM of this ETF is $675 million and trades close to 60 million shares every day. It is one of the highest performing short-term ETFs to trade with a staggering 40% 1-week return rate. 

img_5eebf430c97a6
Historical performance of Direxion Daily Junior Gold Miners Index Bull 3x Shares over the last 5 days. Source – NASDAQ

2. ProShares Ultra Basic Materials (NASDAQ: UYM) 

$21.304
-0.076[-0.36%]
Last update: 8:00PM (Delayed 15-Minutes)
Get Real Time Here
Open21.550Close21.304
Vol / Avg.3.546K / 11.805KMkt Cap-
Day Range21.260 - 21.55052 Wk Range15.730 - 26.240

ProShares Ultra Basic Materials corresponds to a 200% return on the daily performance of Dow Jones U.S. Basic Materials Index. It offers exposure to broad-based, multi-cap companies from the materials industry. 

ProShares Ultra Basic Materials has a high expense ratio of 0.95%. It has a total AUM of $23 million and has an average daily trade volume of 12,866 shares. ProShares Ultra Basic Materials has a high 5-day volatility rate (439%) and a 1-week return rate of 21.16%. 

img_5eebf4330a17a
Historical performance of ProShares Ultra Basic Materials over the last 5 days. Source – NASDAQ

3. Direxion Daily India Bull 3x Shares (NASDAQ: INDL)

$48.44
-0.05[-0.10%]
Last update: 8:00PM (Delayed 15-Minutes)
Get Real Time Here
Open48.570Close48.440
Vol / Avg.23.385K / 17.699KMkt Cap-
Day Range48.425 - 48.91052 Wk Range36.960 - 52.160

Direxion Daily India Bull 3x Shares mirrors the MSCI India Index at a 300% return. It covers 85% of companies in the Indian equity universe. 

Direxion Daily India Bull 3x Shares has a high expense ratio of 1.38%. More than 300,000 shares of this ETF are traded each day. It has a total AUM of $37 million and has a recorded 1-week return of 21.11%. 

img_5eebf4361e162
Historical performance of Direxion Daily India Bull 3x Shares over the last 5 days. Source - NASDAQ   

Best Online Brokers for Leveraged ETFs

An online broker lets you find and trade the top ETFs at your convenience. Benzinga has curated the best online brokers to help you build your wealth and financial portfolio.  

Self Direct Investment by JP Morgan
Best For
  • Chase Customers
securely through Self Direct Investment by JP Morgan's website

1. You Invest by J.P. Morgan

J.P. Morgan introduces you to an easy and low-cost way to invest online with Chase You Invest. You can open a You Invest Trade account with a $0 minimum deposit or a You Invest Portfolio account with a $500 minimum deposit.

Chase You Invest lets you trade unlimited commission-free stocks, ETFs, options and mutual funds online. The platform allows you to access industry insights and educational tools to help you improve your trading tactics.    

Firstrade
Best For
  • Mobile Investing
securely through Firstrade's website

2. Firstrade

Take control of your financial future with Firstrade. You can invest in a full suite of financial products at $0 trade fees with this online broker. No minimum amount is required to open an account on this platform. 

Firstrade gives you free access to research and reports from Morningstar, Briefing, Zacks and Benzinga to heighten your trading experience. You can also participate in live webinars for investment insights during trade sessions.    

TD Ameritrade
Best For
  • Retirement Savers
securely through TD Ameritrade's website

3. TD Ameritrade

TD Ameritrade won the #1 Overall Broker Award in the StockBrokers.com 2020 Online Broker Review. You can open an account with a $0 minimum deposit on the platform. 

TD Ameritrade lets you trade on desktop, web and mobile. You can get stock quotes, manage your portfolio and conduct research directly on Google Assistant and Alexa with voice-enabled commands.  

Amplify Your Returns

Your investments in leveraged ETFs can rake in exponential profits, provided that your market predictions are right. These ETFs give you a chance to boost your returns by 2 or 3 times in 1 single day, but because of the nature of trading, you could lose your money in the same time.