This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Demand for Leveraged ETFs Grows

Stocks in this article: SPY QQQQ FAZ

Demand for Direxion Funds' new exchange traded funds is growing as investors look to triple the performance of stock indexes.

The Direxion triple-leveraged funds, which debuted in November, climbed TheStreet.com Ratings' ranking of the 20 most-traded ETFs in February, based on average daily dollar volume.

The Direxion Financial Bear 3x Shares (FAZ) fund was No. 15 in the ETF ranking, up from 29 in January. The company's Financial Bull 3x Shares (FAS) fund rose to 19th from 23rd, and its Large Cap Bear 3X Shares (BGZ) fund leaped to 20th from 34th.

Eight of the 20 ETFs on the list below are leveraged, meaning they seek to multiply the performance of a given index, including five ProShares funds. Five are "inverse" funds that move opposite the market.

Three funds from January's list didn't make the February roster. Oil Services HOLDRS (OIH) tumbled to No. 22 from 19. The leveraged ProShares Ultra QQQ (QLD)retreated to 24th from 17th, and the SPDR Mid Cap 400 (MDY) sank to 25th from 20th.

The SPDR S&P 500 ETF (SPY) held the top spot with ease with $27.1 billion in average daily turnover. The PowerShares QQQ Trust (QQQQ) ranked second with $4.9 billion.

The SPDR fund's top holdings include Exxon Mobil (XOM), General Electric (GE), AT&T (T) and Microsoft (MSFT).

MOST POPULAR ETFs IN FEBRUARY 2009
RANK, NAME, TICKER & TheStreet.com RATINGS GRADE
PRIOR MNTH RANK
DEC. AVG. DAILY DOLLAR VOL. ($MIL)
FEB. TOTAL RET'N (%)
3-MO. TOTAL RET'N (%)
12-MO. TOTAL RET'N (%)
1 SPDR S&P 500 ETF (SPY) C+
1
27,132.9
-10.75
-17.27
-43.44
2 PowerShares QQQ (QQQQ) C
2
4,937.3
-5.27
-5.32
-35.67
3 ProShares Ultra Short Financials (SKF) C
6
4,605.2
24.14
31.69
49.81
4 ProShares Ultra Short S&P 500 (SDS) B-
3
3,625.8
21.81
28.52
87.28
5 iShares Russell 2000 (IWM) C
4
3,019.8
-11.98
-16.66
-42.27
6 streetTRACKS Gold Trust ETF (GLD) A-
12
2,437.0
1.45
15.34
-3.69
7 DIAMONDS Trust (DIA) B-
5
2,269.8
-11.20
-19.08
-40.68
8 Energy Select Sector SPDR (XLE) C+
9
1,767.8
-12.33
-17.77
-45.17
9 iShares MSCI Emerging Markets (EEM) C-
8
1,685.8
-6.27
-6.18
-53.22
10 ProShares Ultra Short Real Estate (SRS) E-
16
1,496.7
35.44
-28.59
-21.91
11 Financial Select Sector SPDR (XLF) D+
10
1,476.4
-17.75
-39.07
-69.39
12 ProShares Ultra S&P 500 (SSO) D
7
1,457.5
-21.09
-34.76
-74.36
13 ProShares Ultra Short QQQ (QID) C+
13
1,304.3
8.30
-1.75
39.44
14 iShares Dow Jones US Real Estate (IYR) C-
14
1,231.7
-19.78
-22.74
-57.67
15 Direxion Financial Bear 3x Shares (FAZ) U
29
1,209.9
22.88
9.32
N/A
16 iShares MSCI EAFE (EFA) C+
11
1,199.4
-10.39
-15.83
-50.02
17 United States Oil Fund (USO) E+
18
1,129.8
-7.43
-35.73
-66.36
18 iShares FTSE/Xinhua China 25 (FXI) C
15
933.4
-3.19
-7.92
-48.79
19 Direxion Financial Bull 3x Shares (FAS) U
23
862.5
-46.57
-84.02
N/A
20 Direxion Large Cap Bear 3x Shares (BGZ) U
34
804.9
30.37
30.71
N/A
Source: TheStreet.com Ratings & Bloomberg (Data as of 2/28/2009)
For an explanation of our ratings, click here.

Richard Widows is a senior financial analyst for TheStreet.com Ratings. Prior to joining TheStreet.com, Widows was senior product manager for quantitative analytics at Thomson Financial. After receiving an M.B.A. from Santa Clara University in California, his career included development of investment information systems at data firms, including the Lipper division of Reuters. His international experience includes assignments in the U.K. and East Asia.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs