Best-Performing Leveraged ETFs of Last Week

Wall Street was in the red last week. The S&P 500 lost 0.4%, the Dow Jones retreated 1.3%, and the Nasdaq was off 0.6%. Israel-Iran tensions weighed on the broader equity market sentiments. However, safe-haven gold bullion ETF SPDR Gold Trust GLD advanced 3.6% (read: S&P 500 ETFs Hover Near Record Highs: 5 Stocks Aiding the Rally). 

Last week, Israel launched a series of airstrikes on Iran’s nuclear and ballistic missile facilities, targeting key infrastructure and military leaders. The move heightened geopolitical tensions and triggered a wave of risk-off sentiment across global markets.

Iran also retaliated, raising concerns about disruptions and contagion in neighboring oil-producing nations. Both countries have been trading missiles. Per the latest update, Israeli unmanned aerial vehicles struck the South Pars gas field in southern Iran on Saturday. The strikes hit two natural gas processing facilities, according to state media, as quoted on CNBC.

Meanwhile, U.S. consumer prices rose modestly in May, indicating that President Donald Trump’s tariffs have not yet had a significant impact on inflation. The Consumer Price Index (CPI) rose by just 0.1% in May, falling short of the 0.2% monthly increase projected by a Dow Jones survey, as quoted on CNBC.

This puts the annual inflation rate at 2.4%, matching economists’ expectations for the year. This kind of soft inflation data may help the Fed to cut rates in the near term and boost stocks (read: Sector ETFs Likely to Gain on May Inflation Data).

Leveraged ETF Winners

Against this backdrop, below we highlight a few winning leveraged exchange-traded fund (ETF) of last week.

Defiance Daily Target 2X Long ORCL ETF ORCX – Up 49% Last Week

Oracle Corp. (ORCL) shares skyrocketed last week on the upbear earnings results and the AI boom. The stock had its best week since 2001 on the cloud momentum.Management offered revenue guidance for the next fiscal year that was well ahead of consensus. Oracle has been working to close the gap with cloud competitors Amazon, Google, and Microsoft.

MicroSectors U.S. Big Oil 3 Leveraged ETN NRGU – Up 22.1%

Oil prices skyrocketed on June 13, following a major military escalation in the Middle East. The level was the highest level in four months. Rising tensions after Israeli strikes on Iran have reignited concerns that Tehran might retaliate by targeting the Strait of Hormuz — one of the world’s most critical oil chokepoints. Fears of supply disruptions boosted oil prices and energy explorations stocks and ETFs.

Leverage Shares 2X Long TSLA Daily ETF TSLG – Up 20.6%

Tesla Inc. (TSLA) shares have grabbed headlines this month. The stock lost 7% over the past month on the early-June Trump-Musk feud, only to recoup 13.9% gains last week.The recent turnaround in Tesla shares is widely attributed to Musk’s latest attempt to mend ties with the U.S. government. Plus, the scheduled robotaxi launch on June 22 in Austin acted as another driver for the Tesla shares run-up (read: Tesla Stock Slumps on Trump-Musk Feud: Buy the Dip in ETFs?). 

2x Long VIX Futures ETF UVIX – Up 16.7%

The ongoing uncertainty triggered sharp market swings as investors react to potential supply shocks and economic fallout. Volatility ETFs, which are designed to gain value during periods of market turbulence, tend to surge under such conditions. As fear and instability drive rapid changes in asset prices, demand for these ETFs increases, reflecting investors’ efforts to hedge against or profit from the chaos.

Leverage Shares 2X Long PLTR Daily ETF PLTG – Up 15.3%

Palantir Technologies Inc (PLTR) shares surged about 8% last week.The Leverage Shares 2X Long PLTR Daily ETF seeks daily levered investment results, before fees and expenses, of two times of the daily percentage change in the price of the common stock of PLTR.

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This article originally published on Zacks Investment Research (zacks.com).

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