Best Leveraged ETFs of the First Half of 2025


Global stock markets delivered solid first-half returns with standout performance in Europe and emerging markets, while U.S. stocks lagged. 

With the AI boom remaining a dominant investment theme, mega-cap stocks resumed their power over the past couple of months and are once again driving the global stock rally. After easing fears over Trump’s trade policies, a ceasefire between Israel and Iran boosted investors’ sentiment. 

We have highlighted a bunch of the best-performing leveraged equity ETFs from different corners of the market that are at the forefront of the market rally so far. These include MicroSectors Gold Miners 3X Leveraged ETN GDXU, Direxion MSCI Daily South Korea Bull 3X Shares KORU, Direxion Daily Aerospace & Defense Bull 3X Shares DFEN, Direxion Daily MSCI Mexico Bull 3X Shares MEXX and Direxion Daily FTSE Europe Bull 3x Shares EURL.

These funds seek to register big gains in a short span and will continue their strong trend, at least in the near term, provided the sentiments remain bullish. Leveraged ETFs provide multiple exposures (2X or 3X) to the daily performance of the underlying index. These funds employ various investment strategies, such as swaps, futures contracts and other derivative instruments, to accomplish their objectives.

A weakening U.S. dollar has boosted the value of international equities, making them more attractive to global investors. This has particularly benefited emerging market stocks and multinational corporations, improving earnings translation and trade competitiveness. In particular, South Korean stocks jumped to the 3,000 mark for the first time since January 2022 last week, driven by government-led market reforms & fiscal stimulus, and strong foreign and institutional inflows.

The surge in European stocks has been supported by defense spending and fiscal stimulus for infrastructure & green technology (read: European ETFs Set to Gain as ECB Cuts Rate Again).

The first half of 2025 was marked by heightened volatility and uncertainty for the U.S. stock market, largely due to the new administration’s trade policies and geopolitical flare-ups. The S&P 500 hit a record high on Feb. 19, before plunging close to bear market territory by April 8. However, stocks have shown a strong rebound in recent months and are currently hovering near all-time highs. Strong tech-led earnings, easing inflation and steady consumer metrics have underpinned the rally.

The global markets are still grappling with uncertainty surrounding Trump’s trade policies and the outlook for U.S. interest rates.



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