Best-Performing Leveraged ETFs of Last Week

Wall Street was upbeat last week, with the S&P 500 adding 1.5%, the Dow Jones gaining about 0.6% and the Nasdaq surging 2.6%. Last week witnessed the release of the hot January inflation data. The Consumer Price Index (CPI) increased by 3% in January from a year ago and surpassed market forecasts by 2.9%, according to a Feb. 12 report from the Labor Department. This marks an uptick from 2.9% in December and a rise from the 3 1/2-year low of 2.4% recorded in September.

With the release of such hot inflation data, chances are lower that the Fed would cut rates faster this year. Morgan Stanley MS recently adjusted its forecast for U.S. Federal Reserve interest rate cuts, now expecting a single 25 basis point (bps) reduction this year, per Reuters, as quoted on Yahoo Finance. This is in line with projections from Barclays (BCS) and Macquarie. Previously, Morgan Stanley had anticipated two 25 bps cuts in March and June (read: Only One Rate Cut Expected in 2025? ETFs to Play).

Against this backdrop, below we highlight a few winning leveraged exchange traded funds (ETFs) of the last week.

SMCI-Heavy ETFs

GraniteShares 2x Long SMCI Daily ETF (SMCL) – Up 63.9%

Defiance Daily Target 2X Long SMCI ETF (SMCX) – Up 63.4%

Super Micro Computer SMCI shares 25.9% over the past week.  SMCI shares have bounced massively in 2025 following last year’s plunge. The company expects to report net sales in the range of $5.6-$5.7 billion, with the midpoint reflecting 54% year-over-year growth. The sales growth reflects a strong level of demand, precisely what the company has been forecasting over recent periods.

Alibaba-Heavy ETFs

GraniteShares 2x Long BABA Daily ETF (BABX) – Up 43.5%

Alibaba shares surged 16.4% last week as part of the China tech stock rally. Alibaba has gained $100 billion in market value over the past five weeks, while the Hang Seng Tech Index has entered a bull market. Note that after the previous regulatory crackdowns, Beijing appears to be supporting the AI-driven economic shift, as seen in reports that prominent entrepreneurs, including Alibaba co-founder Jack Ma, have been invited to meet with top government officials.

Natural Gas-Heavy ETFs

ProShares Ultra Bloomberg Natural Gas (BOIL) – Up 23.8%

Natural gas futures surged to a two-year high, reflecting increased heating demand and heightened supply concerns. This has led to a spike in natural gas ETFs that deal directly in the futures market. Russia’s latest attacks on Ukraine’s energy infrastructure have disrupted gas production in the Poltava region, raising fears of broader supply instability.The Department of Energy’s statistical arm raised its forecast for U.S. natural gas prices in 2025 and 2026 (read: Cold Weather, Supply Concerns Fuel Natural Gas ETFs).

China-Heavy ETFs

Direxion Daily FTSE China Bull 3X Shares (YINN) – Up 21.3%

Direxion Daily CSI China Internet Index Bull 2x Shares (CWEB) – Up 20%

Several hedge funds are pouring money into Chinese equities on theDeepSeek buzz and the potential for the country’s policy easing. DeepSeek’s breakthrough innovation in artificial intelligence (AI) is driving a resurgence in Chinese equities, prompting hedge funds to reallocate funds from India to China at the fastest pace in months, per Bloomberg, as quoted on Yahoo Finance. Beyond DeepSeek’s influence, expectations of further economic stimulus in China are also attracting investors.  

Apple-Heavy ETFs

GraniteShares 2x Long AAPL Daily ETF (AAPB) – Up 15.2%

T-Rex 2X Long Apple Daily Target ETF (AAPX) – Up 15.2%

Apple stock gained 6.6% last week. At January-end, Apple reported first-quarter fiscal 2025 adjusted earnings of $2.40 per share, which beat the Zacks Consensus Estimate by 1.69%. Net sales increased 4% year over year to $124.3 billion and beat the Zacks Consensus Estimate by 0.24%. Since reporting earnings, Apple shares have displayed signs of improvement. Over the past month, AAPL shares have added more than 7% (as of Feb. 14, 2025).

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