Best-Performing Leveraged ETFs of Last Week
Wall Street put up an upbeat show last week on hopes of a resolution to the Iran-U.S. conflict. The State Street SPDR S&P 500 ETF TrustSPY gained 4.8%, the State Street SPDR Dow Jones Industrial Avg ETF Trust DIA advanced about 3.8%, the Nasdaq-100-based product Invesco QQQ Trust, Series 1 QQQ jumped 6.4%, and the small-cap fund iShares Russell 2000 ETFIWM returned gains of about 6%.
Meanwhile, United States Brent Oil Fund LPBNO slumped 10.5% last week as President Donald Trump signaled that the ongoing Iran conflict could end soon, boosting optimism about easing supply disruptions in the region.
Note that the activity in the Strait of Hormuz — a vital route connecting the Persian Gulf to global markets — remains largely stalled as the conflict entered its seventh week. The United States has imposed a blockade on Iranian traffic, while Tehran has restricted access for most other vessels.
Some analysts are of the view that the ongoing Middle East tensions are priced into the current market. Market participants appear to view recent developments as part of broader negotiation tactics rather than a lasting escalation, as mentioned in a CNBC article.
Upbeat Earnings Season in Focus
Meanwhile, we are off to a strong start to the Q1 earnings season, with companies not only comfortably surpassing consensus estimates but also offering a reassuring outlook on the economy despite elevated energy costs and other risks. Early in the reporting cycle, the momentum is especially evident on the revenue front, both in terms of growth rates and the magnitude of positive surprises.
Winning Leveraged ETFs in Focus
Against this backdrop, below we highlight a few winning leveraged exchange-traded funds (ETFs) that surged last week.
IONQ-Heavy ETFs
GraniteShares 2x Long IONQ Daily ETF IONL – Up 140.4%
Defiance Daily Target 2X Long IONQ ETFIONX – Up 138.7%
IONQ Inc.IONQ advanced 62.9% last week. The company develops quantum computers, quantum networking products and quantum sensing technologies, supported by custom hardware, firmware and an operating system.
The quantum-computing maker announced a new partnership with DARPA. Also, last week, NVIDIA, the AI behemoth, announced it had rolled out a line of AI models called NVIDIA Ising (quoted on Motley Fool). These models are specifically designed to advance quantum technology. The NVIDIA move bolstered sentiment in the quantum industry.
QBTS-Heavy ETF
Tradr 2X Long QBTS Daily ETFQBTX – Up 115.9%
D-Wave Quantum QBTS shares surged 54% last week. This company also develops and delivers quantum computing systems, software and services for commercial customers. The company also benefited from the NVIDIA move.
HIMS-Heavy ETF
Defiance Daily Target 2X Long HIMS ETFHIMZ – Up 111.1%
Hims & Hers Health IncHIMS shares gained about 50% last week. Hims & Hers Health is a consumer-centric health and wellness platform that redefines healthcare through personalized solutions and seamless digital access. Shares of Hims & Hers Health Surged last Thursday as analysts noted that the U.S. drug regulator’s potential move to allow compounding pharmacies to produce popular peptides could support the telehealth firm’s long-term growth, as quoted on Reuters.
Quantum-Heavy ETFs
Defiance 2X Daily Long Pure Quantum ETFQPUX – Up 100.5%
The Defiance 2X Daily Long Pure Quantum ETF provides investors with amplified daily exposure to a select, actively managed basket of pure quantum computing companies, currently including IONQ, RGTI, QBTS and QUBT. Quantum stocks had a great week following NVIDIA’s announcement of new open-source AI models designed to advance the promising technology.
CRML-Heavy ETFs
Leverage Shares 2x Long CRML Daily ETFCRMU – Up 86.1%
Tradr 2X Long CRML Daily ETFCRMX – Up 85.2%
Critical Metals Corp. CRML shares surged about 47.6% last week.Greenland has approved the indirect transfer of the mining license for the Tanbreez rare earth project after Critical Metals Corp. raised its stake in the developer.
The decision paves the way for the company to secure a 92.5% interest in the southern Greenland asset, while the license remains with Tanbreez Mining Greenland A/S, as quoted on mining.com.
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