In general, it was another good month for U.S. stocks with the S&P 500 (SPY) posting a gain of just over 2%, but returns were much more mixed when you dig down a bit.
June belonged mostly to growth sectors. Tech produced the biggest gains returning nearly 7%, while consumer discretionary (XLY) and communication services (XLC) landed at #3 and #5, respectively, among the 11 major GICS sectors. On the other end of the list was the cyclicals. Industrials, financials and materials took the bottom 3 spots producing losses of between 2-5%.
There were outliers though. Energy bucked the anti-cyclical trend and was actually the 2nd best performing sector of June gaining more than 4%. Global energy demand remains brisk as summer travel schedules pick up and oil prices that have stayed firmly in the $70s have helped the cause.
Leveraged ETFs, of course, celebrate the best and the worst of the global economy. With dozens of leveraged and inverse leveraged ETFs available to investors, odds are that if you've performed very well or very poorly, you'll find yourself on this list.
With tech and energy being the top two performing sectors for June, you'll see a lot of 2x and 3x ETFs offering exposure to various segments of these sectors on the list, but don't sleep on the gold miners!
Here's the list of the top performing leveraged ETFs for the month of June.
The ProShares Ultra Bloomberg Natural Gas ETF (BOIL), which seeks to provide twice the daily return of an index composed of natural gas futures contracts, gained nearly 50% following a rise of 22% in natural gas prices during the month. The ProShares Ultra Bloomberg Crude Oil ETF (UCO) and the ProShares Ultra Oil & Gas ETF (DIG) also delivered solid results for their respective commodities.
Gold miners, on the other hand, had a very difficult month. Investors rotated out of precious metals as adding risk became the theme of June. Tempered inflation expectations also contributed to declines. Gold miners ETFs lost about 14% for the month, but the Direxion Daily Junior Gold Miners Bear 2x ETF (JDST) and the Direxion Daily Gold Miners Bear 2x ETF (DUST), which produced the opposite returns, gained more than 30%. The ProShares UltraShort Gold ETF (GLL) and the ProShares UltraShort Silver ETF (ZSL) also show up further down the list.
A number of bullish tech subsector ETFs posted double digit gains in June. The Direxion Daily Dow Jones Internet Bull 3x ETF (WEBL), the Direxion Daily Cloud Computing Bull 2x ETF (CLDL) and the ProShares Ultra Semiconductors ETF (USD) were among 10 different levered tech funds making the leaderboard. Even broad tech funds, such as the Direxion Daily Technology Bull 3x ETF (TECL) made the cut.
Brazil was one of the hardest hit areas of the world for the COVID pandemic and its recovery has propelled stock prices both for the country and the Latin America region. The ProShares Ultra MSCI Brazil Capped ETF (UBR) and the Direxion Daily MSCI Brazil Bull 2x ETF (BRZU) posted gains of 11%, while the Direxion Daily Latin America Bull 2x ETF (LBJ) gained 8%.
Treasuries even make a couple of appearances on the list. 10-year Treasury yields have dropped nearly 20 basis points over the month and that led to strong gains for both the Direxion Daily 20+ Year Treasury Bull 3x ETF (TMF) and the ProShares Ultra 20+ Year Treasury ETF (UBT).