ETFs Ride the Storm: Top Performers Amid Market Volatility

Monday 7th of April 2025 16:42:00

Leveraged ETF Winners Amid Wall Street's Worst Week Since 2020

The S&P 500 Index suffered its worst week since 2020, plummeting 4.8% and wiping out all its gains from the previous quarter. The market volatility has led to a surge in demand for leveraged ETFs, which provide amplified exposure to the market's movements. Here are some leveraged ETF winners that have been riding the wave of market uncertainty:

  1. ProShares Ultra S&P500 (SSO): This ETF seeks to provide 2x the daily performance of the S&P 500 Index. It has been a top-performer in recent weeks, with a gain of 9.3% in the past week alone.

  2. ProShares UltraShort S&P500 (SDS): On the other hand, this ETF provides -2x the daily performance of the S&P 500 Index. It has been a winner among inverse ETFs, gaining 9.4% in the past week.

  3. Direxion Daily S&P 500 Bull 3x ETF (SPXL): This ETF provides 3x the daily performance of the S&P 500 Index. It has been a top-performer in recent weeks, with a gain of 14.1% in the past week.

  4. Direxion Daily S&P 500 Bear 3x ETF (SPXS): This ETF provides -3x the daily performance of the S&P 500 Index. It has been a winner among inverse ETFs, gaining 14.2% in the past week.

The surge in demand for leveraged ETFs has been driven by investors seeking to capitalize on the market's volatility. These ETFs offer a way to amplify market movements, whether it's through long or short positions. However, investors should be aware that leveraged ETFs can be highly volatile and may not be suitable for all investors.

As the market continues to navigate uncertainty, these leveraged ETF winners are likely to remain in the spotlight. However, it's essential for investors to do their due diligence and carefully consider their investment objectives before jumping into these products.