Plenty of commodity exchange-traded funds (ETFs) are on the market today, including broad commodity funds, as well as ETFs that track specific assets like energy, metals, and materials.
Some investors favor implementing advanced ETF trading strategies like using leveraged and inverse ETFs. These funds are for serious traders, and caution is highly advised when putting your money into these investments. For those traders who want to apply alternate strategies to the commodity ETF market, here is a list of both leveraged and inverse ETFs, broken out by commodity type, both broad and specific.
Leveraged and Inverse Energy ETFs
- ERX - Direxion Daily Energy Bull 3X Shares ETF
- ERY - Direxion Daily Energy Bear 3X Shares ETF
Leveraged and Inverse Oil ETFs
Leveraged and Inverse Natural Gas ETFs
- BOIL – ProShares Ultra DJ UBS Natural Gas ETF
- KOLD – UltraShort DJ UBS Natural Gas ETF
- DDG - ProShares Short Oil and Gas ProShares ETF
Leveraged and Inverse Gold ETFs
- DGLDF - VelocityShares 3x Inverse Gold ETN
- DUST - Direxion Daily Gold Miners Bear 3x Shares ETF
- GLL - ProShares UltraShort Gold ETF
- NUGT - Direxion Daily Gold Miners Bull 3x Shares ETF
- UGLDF - VelocityShares 3x Long Gold ETN
Leveraged and Inverse Silver ETFs
- AGQ - ProShares Ultra Silver ETF
- ZSL – ProShares UltraShort Silver ETF
- USLVF - VelocityShares 3x Long Silver ETN
- DSLVF - VelocityShares 3x Inverse Silver ETN
Leveraged and Inverse Platinum ETFs
- LPLA.MI - 2x Daily Long Platinum ETN
- IPLT.L - 2x Inverse Platinum ETN
Leveraged and Inverse Materials ETFs
- SBM – ProShares Short Basic Materials ETF
- SMN – ProShares UltraShort Basic Materials ETF
- UYM - ProShares UltraBasic Materials ETF
As mentioned, leveraged and inverse ETF trading is an advanced strategy—not for novices. As of summer 2021, your brokerage isn't legally obligated to step in and stop a risky trade. With many of these ETFs, the upside and downside are nearly limitless.
Due to the risks involved, these instruments are under constant scrutiny from financial market regulators. Before making any trade, research any or all funds you are considering for your portfolio. Conduct your due diligence, and consult your financial professional if you have questions or concerns.
Frequently Asked Questions (FAQs)
How long should you hold a leveraged commodity ETF?
There aren't any rules about how long you can or can't hold a leveraged commodity ETF. You can hold the position as long as anything else in your portfolio, as long as your account is in good standing. However, leveraged products are designed for short-term traders, and the holdings aren't straightforward investments in the target, so a long-term investor would likely prefer to invest directly in the commodity they want to buy.
How do you identify a leveraged ETF?
A leveraged ETF will note in its prospectus that it is leveraged. Depending on the ETF and the brokerage you use, you may also find this information under sections such as "stated objectives" or "profile," but it will always be in an ETF's prospectus.