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The Top 3 Leveraged ETFs Investors Should Eye in April 2024

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The Top 3 Leveraged ETFs Investors Should Eye in April 2024

Exploring the equities sector is akin to a high-stakes gamble. However, honing in on the best leveraged Exchange-Traded Funds (ETFs) for April could yield promising returns.

Acknowledge the heightened risk profile that accompanies these short-term investment vehicles. Holding onto these positions for extended periods invites the danger of time decay, eroding potential earnings. The game plan here? Quick in, quick out.

Despite the swaying tides, some investors may find solace in this approach, which pales in complexity compared to options trading. Here are some probable candidates for the top leveraged ETFs come April.

ProShares Ultra Bloomberg Crude Oil (UCO)

Rise in gasoline prices concept with double exposure of digital screen with financial chart graphs and oil pumps on a field. Oil prices and oil price predictions

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Initially, considering ProShares Ultra Bloomberg Crude Oil (NYSEARCA:UCO) as a top leveraged ETF for April seems a bit like walking a tightrope. Yet, geopolitical dynamics render fossil fuels an asset class to monitor keenly. Let’s face it – Russia shows no signs of curbing its military aggression. With western nations rallying behind Ukraine, a reduction in supplies correlates to heightened demand.

Domestically, President Joe Biden cannot afford to take a hardline stance against the hydrocarbon industry. The oil workforce constitutes a significant voting bloc. Hence, the sector remains surprisingly pertinent. This paints UCO as a potential play for a swift upward surge.

Direxion Daily Utilities Bull 3X Shares (UTSL)

Miniature house and symbols of public utilities.

Source: Andrii Yalanskyi / Shutterstock

No, I’m not losing my marbles… not just yet! And yes, you’re reading correctly. I’ve zeroed in on Direxion Daily Utilities Bull 3X Shares (NYSEARCA:UTSL) as one of the standout leveraged ETFs for April. Utilities? What’s the angle here?

Well, while the utilities sector may not scream excitement, applying leverage can inject a dash of thrill. Leveraged ETFs entail extreme risks; however, they can provide a sense of urgency to sluggish asset classes. Moreover, the stability of utilities can counterbalance volatility.

Moreover, UTSL finds favor among the best leveraged ETFs for April due to recent developments. Tech companies witnessed a staggering outflow of $4.4 billion not too long ago – the largest weekly outflow on record. Concurrently, the smart money shifted towards conservative investments like investment-grade bonds.

Utilities, known for their conservative nature, could benefit from the ongoing tech sector rotation, thereby boosting UTSL.

Direxion Daily S&P Biotech Bull 3X Shares (LABU)

OLK Stock. Modern Medical Research Laboratory: Two Scientists Wearing Face Masks use Microscope, Analyse Sample in Petri Dish, Talk. Advanced Scientific Lab for Medicine, Biotechnology. Blue Color. KZR stock. RSLS stock. Best Biotech Stocks to Buy

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Lets crank the risk-o-meter to “11” with Direxion Daily S&P Biotech Bull 3X Shares (NYSEARCA:LABU). Punting on the biotech arena could potentially yield magnificent returns owing to the immense upside. Conversely, a solitary clinical setback could spell disaster. I’ve seen my fair share of biotech missteps.

The biotech industry, however, remains evergreen. With disease persisting, the impetus to find cures persists. In matters of life and death, individuals will extricate means to safeguard themselves through advanced therapeutics. What’s the alternative? Thus, LABU could emerge as a beneficiary of this (somewhat bleak) scenario.

Further, a sectoral shift from technology has the potential to buoy the biotech landscape. While financial bigwigs pivot towards conservative avenues, the biotech realm offers a trove of undervalued prospects. In essence, a pivot here could position LABU among the premier leveraged ETFs for April.

On the date of publication, Josh Enomoto did not have any positions (either directly or indirectly) in the securities discussed. The views expressed in this article adhere to the InvestorPlace.com Publishing Guidelines.

Formerly a senior business analyst at Sony Electronics, Josh Enomoto has brokered major deals with Fortune Global 500 firms. Over recent years, he has dispensed invaluable insights into the investment realm, and various other industries encompassing legal, construction management, and healthcare. Connect with him on Twitter at @EnomotoMedia.