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Special Report Big Risk, Potentially Bigger Return For These 3 Leveraged ETF'sSubmitted by Nathan Reiff. First Published: 1/18/2026. 
In Brief - Despite a climb of 17% in the last year in the S&P 500, market turbulence may present opportunities for leveraged ETFs to shine.
- 2x leveraged funds focused on silver or crude oil futures can capitalize on the precious metals rally and on quick changes in the oil market driven by geopolitical developments.
- A narrowly focused leveraged play on the FANG stocks and several other major tech names provides a bet that some of these leaders will return to outperforming in 2026.
With the S&P continuing its upward climb into 2026 despite broad economic uncertainty, investors who feel bullish may be able to capitalize on ascending stocks and commodities with the help of leveraged exchange-traded funds (ETFs). At the same time, these ETFs present an unusually high level of risk and require active investor engagement, so they're likely not right for everyone. Two commodities funds — focused on the red-hot silver market and on crude oil — and one targeting major tech and internet companies might appeal to investors willing to make a high-risk, potentially high-reward play. Double Leverage on Silver For Those Betting the Rally Will Continue A widely followed Wall Street analyst is highlighting AES Corp (AES) as a stock to watch right now, based on signals from his proprietary Power Gauge system. The model tracks factors like momentum, financial strength, and institutional activity across thousands of U.S. stocks.
He breaks down the full reasoning in a short briefing, including why AES is showing unusual strength at this stage of the market. See the full analysis here Active traders bullish on the day-to-day price movements of silver bullion may find it worthwhile to consider the ProShares Ultra Silver ETF (NYSEARCA: AGQ). AGQ seeks to provide 2x the daily return of the Bloomberg Silver Subindex and uses a daily reset to maintain that target. Because of limited ways for many investors to get direct exposure to silver futures, AGQ can be a useful tool for magnifying short-term moves without committing additional cash to futures contracts. As a rolling index, the Bloomberg Silver Subindex does not hold physical metal; it gains exposure through futures positions. Investors should note that the daily reset means performance can diverge from twice the long-term return of silver due to compounding effects over multiple days. AGQ's fee of 0.95% is in line with many 2x leveraged commodities funds, so investors should expect higher costs compared with non-leveraged options. The fund is modest in size, with about $3 billion in assets under management (AUM), but it shows solid liquidity, with a one-month average trading volume above 7 million shares. Because of leverage and daily resetting, AGQ is generally better suited for short-term trading rather than buy-and-hold investing. Still, given that silver has experienced a dramatic rally over the past year, investors who expect continued near-term gains may find AGQ an attractive, if risky, way to amplify those moves. Equal-Weight Exposure to FANG+ Names, But Trading Volumes Are Low 2025 was a volatile year for the so-called FANG stocks (and many adjacent tech names), but Alphabet Inc. (NASDAQ: GOOG) stood out with returns of roughly 65% for the year. The MicroSectors FANG+ Index 2X Leveraged ETN (NYSEARCA: FNGO) may appeal to investors expecting several prominent tech names to regain momentum in 2026. FNGO targets an index of 10 tech and internet/media companies, expanding beyond the original FANG grouping to include firms such as CrowdStrike Holdings Inc. (NASDAQ: CRWD) and Palantir Technologies Inc. (NASDAQ: PLTR). The fund assigns relatively equal weight to each holding, preventing the largest companies by market cap from dominating performance. Like AGQ, FNGO offers 2x daily leverage and carries an expense ratio of 0.95%. Investors should also be aware that FNGO is structured as an ETN, which introduces issuer credit risk in addition to market and leverage risk. FNGO is best considered a targeted, short-term vehicle to gain amplified exposure to this group of companies—useful for traders looking to capitalize on a specific positive catalyst in tech. However, liquidity can be a concern given the fund's low average trading volume, so traders should factor that into execution plans. Despite High Cost and Risks, UCO Can Magnify Oil Gains The start of 2026 could be particularly volatile for oil, as potential U.S. actions related to Venezuela and Iran may keep prices moving. Investors anticipating a strong one-day increase in oil prices might consider the ProShares Ultra DJ-UBS Crude Oil ETF (NYSEARCA: UCO), which offers 2x daily exposure to crude oil futures despite a relatively high expense ratio of 1.43%. UCO has healthy trading activity, so active investors should be able to trade it on a short-term basis—necessary given the fund's daily reset and leverage. The ETF gains exposure through futures contracts, which means its performance generally follows spot oil but can diverge due to contango/backwardation and roll costs. For traders expecting pronounced short-term upside in the oil market, UCO's 2x leverage can meaningfully amplify gains. But the combination of high expense, daily resetting, and futures-related dynamics makes it unsuitable for most long-term investors. Overall, leveraged funds like these can offer significant upside in the right market conditions, but they require active monitoring and a clear exit strategy. They are typically intended for experienced traders who understand daily-reset mechanics, potential compounding effects, and the elevated risks involved.
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