SPXL ETF

The S&P 500 keeps rising, showing an increase of more than 27% so far this year. Investors are already making optimistic predictions for 2025, with Oppenheimer, an ETF provider, setting a bold target of 7,100 for the index.

The SPXL is a 3x leveraged ETF that has generated significant returns, outperforming the S&P 500 by more than five times since it started, even with high volatility. Although it can be risky during turbulent market times, SPXL has the potential to deliver returns of 40%-60% by 2026 if market conditions are moderate. The main risk associated with SPXL is the possibility of sharp market declines, which can make it difficult to recover and achieve long-term profits.

When major market indexes experience volatility, it can create feelings of worry. However, for short-term traders, these market changes can present new opportunities.

Leveraged ETF prices drift due to beta-slippage. This monthly article series monitors 22 of them. ProShares Direxion Daily S&P 500 Bull 3x Shares ETF (SPXL) has experienced both positive and negative drift in its history. In volatile times, it is recommended to use ETFs with less leverage for hedging purposes.

The S&P 500 is up 12% year to date and it could keep on climbing if analyst projections are correct. In turn, that could further boost the Direxion Daily S&P 500 Bull 3X Shares ETF (SPXL).

The S&P 500 reached new highs after a challenging start to the first quarter of 2024, and is now doing the same at the beginning of Q2. Although market corrections are inevitable, they serve as a reminder that traders can capitalize on temporary downturns.

Any sliver of news that feeds into the higher-for-longer interest rates narrative will be an unwelcome guest for tech bulls. For traders looking to feed off bearishness, it's an opportunity to take advantage of inverse exchange traded funds (ETFs).

Investors have been basking in the sunlight of a year-end market rally in 2023 that appears to be continuing in 2024 after a slow start to January. However, a Fed that's keeping rates steady amid hotter-than-expected inflation is allowing volatility to spike, but offers a potential inverse ETF play for traders.

Based on the laws of physics, an object in motion stays in motion. That certainly rings true for the S&P 500.