Top Performing Leveraged/Inverse ETFs: 10/26/2025

Last week's top-performing leveraged and inverse ETFs demonstrated diverse market drivers, with several gold-related inverse products, including DZZ which surged over 105%, benefiting from reduced safe-haven demand amid U.S.-China trade optimism and Federal Reserve focus. Significant gains were also observed in leveraged ETFs tracking AMD (AMDL) due to partnerships, aerospace & defense (DFEN) from increased spending, and Robinhood (HOOX) on analyst upgrades and growth expectations. Additionally, natural gas (BOIL) rose on demand forecasts, while South Korea (KORU) and regional banks (DPST) saw strong performance driven by economic growth and strategic expansion, respectively, illustrating distinct sector-specific catalysts.

Analysis

Gold-related inverse ETFs, including DZZ (105.71% return) and GDXD (20.39% return), significantly outperformed last week. This performance was driven by reduced safe-haven demand for gold amidst growing optimism regarding U.S.-China trade talks. Investors are also re-evaluating positions ahead of the Federal Reserve's upcoming interest rate decision, further impacting gold's appeal.

Leveraged equity ETFs tracking specific sectors and companies also showed strong gains. AMDL, linked to Advanced Micro Devices, rose 16.64% on new partnerships and positive analyst reports. DFEN (Aerospace & Defense) gained 15.78% due to increased U.S. defense spending, while HOOX (Robinhood) surged 14.10% on analyst upgrades and expectations for higher trading and crypto fees.

Broader economic trends supported other leveraged plays, with KORU (South Korea Bull 3X) returning 11.90% on robust exports and domestic spending. DPST (Regional Banks Bull 3X) saw 10.84% growth, reflecting strategic mergers and expansion within the sector. Natural gas ETF BOIL climbed 12.83% due to higher demand forecasts driven by colder weather and LNG exports.

Key Decisions for Investors

• Monitor geopolitical developments, particularly U.S.-China trade relations and Federal Reserve policy, as they significantly influence safe-haven assets like gold.
• Evaluate sector-specific catalysts, such as defense spending, tech partnerships, and regional banking consolidation, for potential leveraged opportunities.
• Consider the impact of weather forecasts and global energy demand on commodity-linked ETFs, especially natural gas, for short-term tactical plays.
• Assess the inherent risks of leveraged and inverse ETFs, including daily rebalancing and potential for rapid capital erosion, ensuring they align with risk tolerance and investment horizons.