CWEB ETF

U.S. stock indices closed last week on a solid note as investors reacted to a favorable inflation report.

CWEB is a leveraged ETF focused on Chinese internet stocks, which act as proxies for China's mass consumption sector, including e-commerce and mobile gaming companies. Persistent deflation and weak consumption in China have led to low valuations for these stocks, despite robust EBITDA growth and share buyback programs. The Chinese government is shifting towards aggressive fiscal and monetary policies to combat deflation, which should stabilize consumption and re-rate these stocks.

These were last week's top performing leveraged and inverse ETFs. Note that because of leverage, these kinds of funds can move quickly.

Leveraged ETFs are trading vehicles that amplify the returns of an underlying index, but they are risky and should be traded only at the right time. Direxion Daily CSI China Internet Bull 2X Shares ETF is a leveraged fund that aims to deliver twice the daily performance of the CSI Overseas China Internet Index. The CWEB ETF's performance has been worse compared to its non-leveraged counterpart, KraneShares CSI China Internet ETF, and the current volatility in the Chinese market makes it challenging to trade CWEB.

Wall Street delivered an upbeat performance last week, with the Dow Jones logging the best week since July.