4 Best-Performing Inverse/Leveraged ETFs of Last Week

Wall Street was mixed last week with the S&P 500 (up 0.32%), the Dow Jones (down 1.4%), the Nasdaq Composite (up 1.24%) and the Russell 2000 (down 2.85%) displaying a mixed performance. New COVID-19 restrictions overseas weighed on the broader market at the end of the week, solid retail earnings, monthly retail sales data and investors’ love for technology amid the renewed lockdown fears boosted the Nasdaq meaningfully.

The Nasdaq Composite reported 46th record close of 2021 on Nov 19. By now we all know, Internet and tech stocks are pandemic winners as these have less to do with human contact. The coronavirus scare favored the online retailing industry as any kind of lockdown and self-imposed quarantine give a boost to demand for online shopping and other kinds of Internet activities.

Against this backdrop, below we highlight best-performing inverse/leveraged ETF areas of last week that include Etfmg 2X Daily Inverse Alternative Harvest ETF MJIN, Microsectors -3X U.S. Big Oil Index ETN NRGD, Consumer Discretionary Bull 3X Direxion WANT and Ultrashort MSCI Brazil Capped ETF BZQ.

Inverse Marijuana

Etfmg 2X Daily Inverse Alternative Harvest ETF – Up 34.7%

Cannabis stocks recorded a five-day losing streak, as legalization efforts at the federal level in the United States seemed to have wavered. The largest fund tracking the pot industry, ETFMG Alternative Harvest ETF MJ, slipped to its lowest price since last year and is down 60% from its high in February. Notably, marijuana stocks had jumped before this month on legalization hopes. Now, a losing hope is eating away all the previous gains.

Inverse Energy/Oil

Microsectors -3X U.S. Big Oil Index ETN NRGD – Up 20.1%

Microsectors -3X U.S. Big Oil Index ETN (DRIP) – Up 16.8%

Microsectors Oil & Gas Exp. & Prod. -3X Inverse (OILD) – Up 16.2%

Oil prices slumped 3.2% on Nov 19 to a six-week low  on lockdown fears. Crude, in fact, recorded four successive weeks of losses for the first time in more than a year. This marked the longest weekly losing streak since March 2020.

Consumer Discretionary

Consumer Discretionary Bull 3X Direxion – Up 11.5%

The retail space is seemingly a hot one as the sector is seeing strong earnings reports and sales momentum. The upbeat holiday season sales forecasts are acting as the icing on the cake. The retail sales rose 1.7% in October (the largest surge since March), beating economists’ estimate of a 1.4% rise. This, in turn, marked a 16.3% increase from the year-ago figure. The metric rose for three months in a row. Online sales rose 10.2% from the year-ago level.

Plus, according to the National Retail Federation, holiday season sales in 2021 are projected to surpass all existing records during November and December and rise 8.5-10.5% year over year to between $843.4 billion and $859 billion.

Inverse Brazil

Ultrashort MSCI Brazil Capped ETF  – Up 11.5%

Concerns over Brazil’s fiscal situation have been weighing on the markets, while traders are increasingly worried about the prospect of renewed lockdowns due to the resurgence of COVID-19 infections, particularly in Europe. During the week, the key Brazilian stock index booked losses of over 3%, snapping two successive weeks of gains.

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ProShares UltraShort MSCI Brazil Capped (BZQ): ETF Research Reports

ETFMG Alternative Harvest ETF (MJ): ETF Research Reports

Direxion Daily Consumer Discretionary Bull 3X Shares (WANT): ETF Research Reports

MicroSectors U.S. Big Oil Index 3X Inverse Leveraged ETN (NRGD): ETF Research Reports

ETFMG 2X Daily Inverse Alternative Harvest ETF (MJIN): ETF Research Reports

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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