FNGU ETF

We highlight a bunch of the best-performing leveraged equity ETFs that have gained more than 70% in the first nine months of 2024.

FNGU is a 3x leveraged ETN targeting daily returns of the FANG+ index with a daily reset mechanism. Due to the compounding effect as a result of the daily reset, FNGU is unsuitable for buy-and-hold strategies and is recommended for active daily trading only. Recent bearish sentiment in tech stocks post-CYq2'24 earnings suggests a potential downtrend, prompting a SELL rating for FNGU.

The MicroSectors FANG+ Index 3X Leveraged ETN is a concentrated bet on the 10 largest U.S. technology stocks. Over the past year, FNGU has outperformed the Invesco Nasdaq-100 Trust QQQ's by 7x over the past year and the Vanguard S&P 500 ETF by 11x. However, there are risks associated with FNGU's strategy, and some of the top holdings in the FANG+ Index (the so-called "Fab-7") have underperformed and are no longer quite so "fabulous".

We highlight a bunch of the best-performing leveraged equity ETFs from different corners of the market that are leaders in their segments in the first half of Q1.

The tech-heavy Nasdaq Composite Index outperformed, gaining 5.8%, while the S&P 500 added just 0.3%. The Dow Jones Industrial Average Index dropped 3.5% for the month.

Wall Street offered a moderate performance last week. On a positive note, there were upbeat big tech earnings and on a negative note, there were renewed regional banking crisis.

Leveraged tech ETFs gained handsomely after hours on Apr 25 due to upbeat releases from Alphabet and Microsoft.