Latest news with #MicroSectorsGoldMiners3XLeveragedETN
Yahoo
25-06-2025
- Business
- Yahoo
Best Leveraged ETFs of the First Half of 2025
Global stock markets delivered solid first-half returns with standout performance in Europe and emerging markets, while U.S. stocks lagged. With the AI boom remaining a dominant investment theme, mega-cap stocks resumed their power over the past couple of months and are once again driving the global stock rally. After easing fears over Trump's trade policies, a ceasefire between Israel and Iran boosted investors' sentiment. We have highlighted a bunch of the best-performing leveraged equity ETFs from different corners of the market that are at the forefront of the market rally so far. These include MicroSectors Gold Miners 3X Leveraged ETN GDXU, Direxion MSCI Daily South Korea Bull 3X Shares KORU, Direxion Daily Aerospace & Defense Bull 3X Shares DFEN, Direxion Daily MSCI Mexico Bull 3X Shares MEXX and Direxion Daily FTSE Europe Bull 3x Shares funds seek to register big gains in a short span and will continue their strong trend, 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 swaps, futures contracts and other derivative instruments, to accomplish their objectives. A weakening U.S. dollar has boosted the value of international equities, making them more attractive to global investors. This has particularly benefited emerging market stocks and multinational corporations, improving earnings translation and trade competitiveness. In particular, South Korean stocks jumped to the 3,000 mark for the first time since January 2022 last week, driven by government-led market reforms & fiscal stimulus, and strong foreign and institutional surge in European stocks has been supported by defense spending and fiscal stimulus for infrastructure & green technology (read: European ETFs Set to Gain as ECB Cuts Rate Again). The first half of 2025 was marked by heightened volatility and uncertainty for the U.S. stock market, largely due to the new administration's trade policies and geopolitical flare-ups. The S&P 500 hit a record high on Feb. 19, before plunging close to bear market territory by April 8. However, stocks have shown a strong rebound in recent months and are currently hovering near all-time highs. Strong tech-led earnings, easing inflation and steady consumer metrics have underpinned the rally. The global markets are still grappling with uncertainty surrounding Trump's trade policies and the outlook for U.S. interest rates. MicroSectors Gold Miners 3X Leveraged ETN (GDXU) – Up 184.5%MicroSectors Gold Miners 3X Leveraged ETN seeks to deliver three times (3X or 300%) the performance of the S-Network MicroSectors Gold Miners Index. It has amassed $631.4 million in its asset base and charges 95 bps in annual fees. MicroSectors Gold Miners 3X Leveraged ETN trades in an average daily volume of 604,000 shares (read: Gold ETFs Shine in 1H: Will the Bloom Continue in 2H?).Direxion MSCI Daily South Korea Bull 3X Shares (KORU) – Up 114.3%Direxion MSCI Daily South Korea Bull 3X Shares offers 3x leveraged exposure to the South Korean equity market by tracking the MSCI Korea 25/50 Index. It charges an annual fee of 95 bps and trades in a light average daily volume of about 285,000 shares. The fund has accumulated AUM of $137.4 Daily Aerospace & Defense Bull 3X Shares (DFEN) – Up 73.4%Direxion Daily Aerospace & Defense Bull 3X Shares creates a three times leveraged long position in the Dow Jones U.S. Select Aerospace & Defense Index. It charges an annual fee of 92 bps and trades in a good average daily volume of about 275,000 shares. Direxion Daily Aerospace & Defense Bull 3X Shares has AUM of $256 million (read: Defense ETFs Soar Amid Rising Global Tensions).Direxion Daily MSCI Mexico Bull 3X Shares (MEXX) - Up 70.7%Direxion Daily MSCI Mexico Bull 3X Shares creates a three-times long position in the MSCI Mexico IMI 25/50 Index, charging 95 bps in annual fees. It has an AUM of $19.8 million and trades in an average daily volume of 91,000 Daily FTSE Europe Bull 3x Shares (EURL) – Up 57.5%Direxion Daily FTSE Europe Bull 3x Shares seeks to deliver three times the performance of the FTSE Developed Europe All Cap Index. It charges 95 bps in annual fees and trades in an average daily volume of 50,000 shares. Direxion Daily FTSE Europe Bull 3x Shares has amassed $44 million in its asset base. 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).Yet, for ETF investors who are bullish on these regions in the near term, any of the above-mentioned products can be an interesting choice. A near-term long could be intriguing for those with high risk tolerance and a belief that the trend is a friend in this corner of the investing world. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
14-04-2025
- Business
- Globe and Mail
Make Big Bets on Gold With These 3 Leveraged Mining Funds
The world's favorite precious metal reasserted its worth as a safe haven asset as markets tumbled in the first few days of April. As of April 4, 2025, the price of gold is up an impressive 30% in the past year and 14.5% year-to-date (YTD). Meanwhile, as the S&P 500 plunged by 8.2% the week of March 31, 2025—due largely to the announcement of sweeping tariffs on imports from dozens of nations—the spot price of gold dropped by only 2.6% at the same time. Increased day-to-day market turbulence and growing calls for a potential recession may prompt investors to exercise caution, and one way to do this is to rebalance portfolios toward defensive plays like gold. And some investors might see an opportunity to make a bolder bet on the precious metal: a leveraged exchange-traded fund (ETF) or note (ETN). These investments can amplify gains but also have the potential to magnify losses for an overall high-risk, high-reward bet. Three such exchange-traded products may appeal to investors seeking to capitalize on gold's rally indirectly —through the share prices of gold mining stocks, which tend to correlate movement with the price of the metal itself: GDXU, GDXU: Broad, Triple-Leveraged Exposure to Gold Miners [content-module:CompanyOverview|NYSEARCA:GDXU] If you're looking for a single leveraged product that offers exposure to both large and mid-cap gold miners, consider the MicroSectors Gold Miners 3X Leveraged ETN (NYSEARCA: GDXU). GDXU is an ETN —a debt instrument issued by Bank of Montreal. This means it doesn't hold physical assets but instead promises to pay returns based on its index. ETNs carry issuer credit risk, so investors are also exposed to the solvency of the issuing bank. This ETN takes a unique approach to gold mining stocks by tracking the performance of the S-Network MicroSectors Gold Miners Index—which is itself composed of two major gold mining ETFs: VanEck Gold Miners ETF (NYSEARCA: GDX): GDX focuses on large-cap miners and has a concentrated portfolio where top holdings can represent over 10% each. VanEck Junior Gold Miners ETF (NYSEARCA: GDXJ): GDXJ targets smaller-cap mining firms but includes a few larger players and some that focus on metals other than gold. Its asset distribution is more balanced, with top holdings closer to 7%. Between these two funds, GDXU provides investors with broad exposure to gold mining companies at multiple places on the market capitalization spectrum. GDXU tends to be more heavily weighted toward GDX, which is made up of larger firms. GDXU provides 3x leverage, reset daily. This means daily gains in GDX and GDXJ are tripled, although investors must be cautious not to remain exposed to GDXU for a longer period, lest they risk diverging from the fund's intended results. This makes GDXU a great choice for investors keen to amplify short-term spikes in the share price of gold mining firms. Its expense ratio of 0.95% is on the low side for 3x leveraged funds, an added bonus. NUGT: A Concentrated, Double-Leveraged Bet on Top Miners [content-module:CompanyOverview|NYSEARCA:NUGT] The Direxion Daily Gold Miners Index Bull 2X Shares (NYSEARCA: NUGT) ETF tracks the NYSE Arca Gold Miners Index, which is the same index that GDX targets. This index is fairly concentrated in a handful of names, with the largest positions routinely occupying at least 10% of the portfolio. This makes NUGT a targeted leverage play on some of the top names in the gold mining space. NUGT is an ETF, meaning it actually holds the underlying assets—in this case, derivatives tied to gold mining stocks. This reduces credit risk and enhances transparency as ETFs don't rely on the solvency of an issuer the way an ETN does. With an expense ratio of 1.13%, NUGT is not an inexpensive fund. Its 2x leverage also resets daily, making it ideal for short-term plays. Indeed, investors wishing for long-term exposure to the index may be better off trading in GDX shares directly—the expense ratio is significantly lower, and results won't be skewed due to compounding returns. Still, for individual days in which the gold mining industry thrives, NUGT is a great choice to maximize gains. JNUG: Aggressive Exposure to Junior Gold Miners [content-module:CompanyOverview|NYSEARCA:JNUG] For traders seeking high volatility and outsized returns from smaller mining companies, look to the Direxion Daily Junior Gold Miners Index Bull 2X Shares (NYSEARCA: JNUG). JNUG offers 2x daily leveraged exposure to the GDXJ, making it a powerful tool for those looking to capitalize on sharp short-term movements in the junior mining space. But keep in mind the risk level is high with this ETF. When you combine small-cap volatility with leverage, it can lead to large swings. That makes JNUG best suited for active traders who can monitor their positions closely rather than long-term buy-and-hold investors. Because GDXJ includes a wider range of companies—some not exclusively focused on gold—JNUG also gives indirect exposure to the broader mining sector. This can occasionally soften or skew its correlation to the price of gold, especially in the short term. With that in mind, JNUG may appeal most to traders who are not only bullish on gold but who also expect junior miners to outperform their larger peers during surges in the precious metals market. Where Should You Invest $1,000 Right Now? Before you make your next trade, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.
