Top Performing Leveraged/Inverse ETFs: 09/28/2025

Top-performing leveraged and inverse ETFs last week reflected significant market shifts across several sectors. Inverse cryptocurrency ETFs, including ETHD and SBIT, gained over 10% amid substantial declines in Bitcoin and Ethereum, driven by Federal Reserve data anticipation, a strengthening dollar, and liquidations. Leveraged energy funds like WTIU and NRGU surged up to 17% as oil prices climbed due to geopolitical tensions, declining US crude inventories, and lower interest rate expectations. Concurrently, leveraged precious metals ETFs (AGQ, GDXU) saw gains from a weakening dollar, anticipated Fed rate cuts, and ongoing conflicts, while BABX benefited from Alibaba's increased AI spending announcements.

Analysis

Last week's top-performing leveraged and inverse ETFs highlight significant thematic rotations across key asset classes. Inverse cryptocurrency funds, specifically ProShares UltraShort Ether ETF (ETHD) and ProShares UltraShort Bitcoin ETF (SBIT), delivered substantial gains of 18.32% and 10.90% respectively. This performance was driven by a broad crypto market decline attributed to anticipation of Federal Reserve economic data, a strengthening U.S. dollar, and a significant deleveraging event that liquidated over $1.5 billion in long positions. In contrast, the energy sector demonstrated considerable strength, with multiple leveraged ETFs like WTIU and NRGU posting returns exceeding 17%. This rally in oil-related instruments was fueled by a confluence of factors including persistent geopolitical tensions in the Middle East and Ukraine, falling U.S. crude inventories, and expectations of lower interest rates. The precious metals complex also saw bullish momentum, with ProShares Ultra Silver (AGQ) returning 14.51% and MicroSectors Gold Miners 3X Leveraged ETN (GDXU) gaining nearly 10%, propelled by a weakening dollar and anticipated Fed rate cuts. On a single-stock level, GraniteShares 2x Long BABA Daily ETF (BABX) gained 10.69%, reflecting a direct market reward for Alibaba's announcement to increase its AI spending.

Key Decisions for Investors

• Investors should monitor geopolitical developments and weekly U.S. crude inventory reports, as these are the primary drivers for the significant volatility and performance in leveraged energy ETFs like WTIU and NRGU.
• Given the sensitivity of cryptocurrency prices to macro policy, traders should closely watch upcoming Federal Reserve announcements and U.S. dollar movements, which are key catalysts for inverse products like ETHD and SBIT.
• The performance of leveraged precious metals ETFs such as AGQ and GDXU is highly contingent on Fed interest rate policy and currency fluctuations; therefore, tracking forward guidance on rates and the dollar's trajectory is critical.
• Note the market's immediate positive reaction to Alibaba's increased AI investment, signaling that company-specific news regarding AI capital allocation may serve as a potent short-term catalyst for related technology stocks and their leveraged ETF counterparts.