Top Performing Leveraged/Inverse ETFs Last Week These were last week's top performing leveraged and inverse ETFs. Note that because of leverage, these kinds of funds can move quickly.
The Direxion Daily Regional Banks Bull 3X Shares ETF (has had a volatile 2025, characterized by a steep drop in April followed by a full recovery into year-end. Looking ahead to 2026, expectations for higher GDP growth and a lower unemployment rate should create a favorable backdrop for regional banks. Regional banks offer a sizable 24% P/E discount relative to the broad U.S. financials sector, with EPS growth seen at about 10%.
I rate Direxion Daily Regional Banks Bull 3X Shares ETF as a 'Sell' due to structural risks and an unconvincing sector outlook for 2026. The fund's leverage amplifies the sector's already considerable volatility, leading to persistent underperformance versus unlevered regional bank ETFs. DPST may suit short-term traders, but I see little justification for long-term portfolio inclusion.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| YA Yinka Akinsola Blue Trust Inc. | 30 | $2,603.7 | $4,406.4 | $1,802.7 | 69.24% |
Lukas Lindgren Abound Wealth Management | 86 | $8,563 | $12,670.81 | $4,107.81 | 47.97% |
| AAL Avraham A. Levitan Glass Jacobson Investment Advisors LLC | 314 | $30,530.4 | $49,195.95 | $18,665.55 | 61.14% |
Jae Cho Marex Group plc | 3,261 | $315,176 | $512,987.91 | $197,811.91 | 62.76% |
Kings Path Partners LLC Kings Path Partners LLC | 8 | $694.3 | $1,184.12 | $489.82 | 70.55% |
| ARCA Exchange | US Country |
The described company is a financial entity primarily focused on investing in a variety of financial instruments to provide its investors with 3X daily leveraged exposure to a specific index. This index is a modified equal-weighted index targeting the performance of stocks within the S&P Total Market Index that fall under the GICS regional banks sub-industry. By allocating at least 80% of its net assets into swap agreements, securities of the index, and ETFs that mirror the index, the company aims to achieve its investment objective. It is important to note that the fund maintains a non-diversified status, implying a more concentrated investment approach rather than spreading risks across a wide array of assets.
These are derivative contracts through which two parties exchange the cash flows or liabilities from two different financial instruments. In the context of this fund, swap agreements are utilized to achieve the desired leveraged exposure to the index, playing a critical role in meeting the fund's investment objective.
Investing directly in securities that are part of the target index allows the fund to gain direct exposure to the underlying assets of the regional banking sector. This method is one of the fundamental strategies employed by the fund to ensure that it closely tracks the performance of the designated index.
Exchange-Traded Funds (ETFs) that mirror the performance of the index are another avenue through which the fund invests. These ETFs provide a more liquid and efficient means of gaining the desired exposure to the index, contributing to the fund's ability to offer 3X daily leveraged returns to its investors.