Leveraged and Inverse ETF Winners and Losers

Below we highlight the best and worst performing leveraged and/or inverse ETFs since the S&P 500 made its recent bottom on November 20th. With the S&P 500 up more than 20% since November 20th, there's no surprise that the entire list of the biggest gainers is made up of long ETFs, while all ETFs in the list of losers are inverse (short). As shown, the 3x smallcap ETF (TNA) is up the most since 11/20 at 82%, followed by 2x basic materials (UYM), 2x telecom (LTL), and 2x midcap growth (UKW).

On the downside, the 2x inverse real estate ETF (SRS) has declined the most at -78%. SRS is followed by 3x inverse financials (FAZ), 3x inverse smallcap (TZA), and 2x inverse China (FXP).

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Comments

[herbert hoover:]

Of course the bear funds have done worse since the most recent bottom was set in November. Who in their right mind would invest in a bear market fund when the markets are going up 20 percent????

Why not choose a different date to base your analysis like - How these ETFs performed during the calendar year 2008?

Jan 09 09:07 AM

[fjpenney:]

Leveraged ETF's have to be used with timers in my opinion. Regardless of the timeframe chosen for comparison of leveraged ETF's, you will get meaningless information unless you base it on a timer as I do.

Jan 09 09:17 AM

[jayminho:]

those etfs x2, x3, and pretty soon x4 and x5 are crazy stuff, tempting, but too crazy for me.

Jan 09 12:21 PM

[searcher:]

Can only see using leveraged ETF as a paired hedge to an equal term 'daily' trade. Compounding will kill you.

Jan 09 03:07 PM