An exchange traded fund (ETF) is a fund that holds tens, hundreds, or even thousands of stocks or bonds. ETFs are traded on major stock exchanges such as the NYSE and Nasdaq. Investing in ETFs combines mutual fund diversity with reduced investment minimums and real-time pricing.
Here are this week’s best performing ETFs, which have provided investors with consistent returns.
1. Direxion Daily FTSE China Bear 3x Shares – Up 65.34% Over 1 Month
Direxion Daily FTSE China Bear 3X Shares (NYSE: YANG). YANG offers 3x inverse leveraged exposure to a market-cap-weighted index of the 50 biggest Chinese companies trading in Hong Kong on a daily basis. The fund aims to approach three times the return of the fund’s benchmark on any given day, the fund is not intended for long-term holdings.
2. MicroSectors U.S. Big Oil Index -3x Inverse Leveraged ETN – Up 47.20% Over 1 Month
MicroSectors U.S. Big Oil Index -3x Inverse Leveraged ETN (NYSEARCA: NRGD). NRGD is a leveraged inverse take on the US oil and gas sector. The fund, in particular, tracks three times the inverse of the Solactive MicroSectors US Big Oil index, which picks and evenly weights the ten largest qualifying firms based on their free-float market cap level.
3. ProShares UltraShort FTSE China 50 – Up 40.61% Over 1 Month
ProShares UltraShort FTSE China 50 (NASDAQ: FXP). FXP gives you a -2x exposure to a free-float-weighted index of 50 of the biggest and most liquid Chinese companies listed on the Hong Kong Stock Exchange. The underlying index of FXP is strongly weighted toward financials, energy, and telecommunications firms.
4. Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 2x Shares – Up 40.18% Over 1 Month
Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 2X Shares (NYSE: DRIP). DRIP provides 2x inverse daily exposure to an index of the major oil and gas exploration and production firms in the United States. The index is equal weighted, whereas market-cap weighting would need excessive concentration in a few big businesses.
5. Direxion Daily S&P Biotech Bear 3X Shares – Up 39.20% Over 1 Month
Direxion Daily S&P Biotech Bear 3X Shares (NYSEARCA: LABD). LABD is a daily leveraged inverse (-3x) bet on an equal-weighted index of biotech equities in the United States. The fund’s exposure is mostly to biotechnology and medical research, but it also has considerable exposure to pharmaceuticals.
Should You Invest in the Best Performing ETFs?
ETFs may be purchased in a variety of ways, with the method you pick largely determined by your investment goals. If you wish to invest in a wide range of ETFs, but are unsure of where to start, you should consult with a financial advisor for excellent investment advice.