Big Risk, Potentially Bigger Return For These 3 Leveraged ETF's

Key Points

• 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, respectively—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

Active traders bullish on the day-to-day price movements of silver bullion may find it worthwhile to take a chance on the ProShares Ultra Silver ETF NYSEARCA: AGQ. AGQ provides 2x leverage on the Bloomberg Silver Subindex, with a daily reset that ensures positions turned over each day do not suffer from compounding.

Because of the limited options for investors seeking direct exposure to silver via futures contracts, AGQ can be a useful tool for increasing access without spending additional cash. As a rolling index, the Bloomberg Silver Subindex does not own any commodities directly, but rather focuses exclusively on futures.

AGQ's fee is on par with many other 2x leveraged commodities funds at 0.95%, so investors can expect to spend a bit more on this ETF compared to non-leveraged funds for the opportunity for greater returns.

The fund is not huge, with about $3 billion in assets under management (AUM), but it does have strong liquidity based on a one-month average trading volume above 7 million.

As a leveraged fund that resets daily, it may not make sense for investors to focus on returns over longer periods. However, given that the price of silver has nearly tripled in the last year during an incredible and sustained rally, investors expecting this trend to continue might consider AGQ a risk worth taking.

Equal-Weight Exposure to FANG+ Names, But Trading Volumes Are Low

2025 was a volatile year for the so-called FANG stocks (and many other companies adjacent to them in the tech space), but Alphabet Inc. NASDAQ: GOOG emerged as one standout with returns of about 65% for the year. The MicroSectors FANG+ Index 2X Leveraged ETN NYSEARCA: FNGO may appeal to investors expecting some of the most prominent tech names in the country to gain momentum in the new year.

FNGO targets an index of 10 tech and internet/media companies, expanding beyond the original FANG grouping to also include companies like CrowdStrike Holdings Inc. NASDAQ: CRWD and Palantir Technologies Inc. NASDAQ: PLTR.

Like the underlying index, FNGO assigns relatively equal weight to each holding, ensuring that the largest names by market value don't exert an outsized influence on the fund's performance.

Like AGQ above, FNGO has an expense ratio of 0.95% and has 2x leverage that resets on a daily basis.

Investors should consider FNGO a targeted, short-term access point to this group of companies that might perform especially well on a day in which the tech space enjoys a unique upward price catalyst. Beware, however, that liquidity may be a concern given the fund's low average trading volume.

Despite High Cost and Risks, UCO Can Magnify Oil Gains

The beginning of 2026 could be a particularly volatile time for the oil market, as the potential for continued U.S. intervention in Venezuela and Iran is likely to keep prices moving.

Investors seeing the possibility of a big one-day increase in the price of oil should consider the ProShares Ultra DJ-UBS Crude Oil ETF NYSEARCA: UCO, which can pay off in these cases despite its high 1.43% expense ratio.

With a healthy level of trading activity, active investors should not find it prohibitive to trade the UCO on a short-term basis, which is also necessary in the case of this fund due to its daily reset.

UCO also focuses on oil futures, which means it mostly moves in connection with the spot price of oil but will not necessarily do so all of the time.

Nonetheless, its 2x leverage is a powerful way to potentially amplify positive price changes in the oil market at a time when those are likely to be comparatively easy to find.