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The ProShares UltraPro Russell 2000 and iShares Russell 2000 ETFs have both marginally underperformed the S&P 500 so far this year, in line with poor performance over the past decade. In this article, I discuss multiple catalysts that may boost Russell 2000 returns, including an end to the government shutdown, Fed rate cuts, and cheap valuations. As such, this may be an opportunistic time to go long URTY and IWM, confirming a buy rating on both ETFs.
ProShares UltraPro Russell2000 targets 3x daily returns of the Russell 2000 Index, but actual returns can deviate significantly over time. Holding leveraged ETFs beyond one day exposes investors to compounding effects and beta slippage, especially in volatile markets. Beta slippage can cause leveraged ETF returns to underperform or outperform the expected multiple, depending on volatility and holding period.
Top Performing Levered/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.
Donald Trump's historic victory in the presidential race unleashed a massive rally in the U.S. stock market and ETF space.
URTY is not ideal for long-term holding because of its high costs, low yield, and the amplified losses associated with 3X leverage. Naturally, when the market is bullish, URTY outperforms other ETFs like IWM by 3X. Seasonal trends and technical indicators suggest a potential bullish phase for URTY, with strong uptrends likely in November and December.
These were last week's top performing leveraged and inverse ETFs. Note that because of leverage, these kinds of funds can move quickly.
The S&P 500 hit to record close last week, as investors gained optimism from some of President Joe Biden's encouraging announcements regarding booster shots and testing kits.
Wall Street was at the record high last week due to upbeat corporate earnings, strong jobs data and Pfizer's pill study.
Full call transcripts — prepared remarks + analyst Q&A — with speaker-by-speaker formatting and one-click switching across every quarter on file.
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Transcripts source: company-published earnings calls. Speaker attribution and formatting are processed in-app.