Volatility has been on the forefront this year, compelling investors to flock to the leveraged or inverse ETFs in the space. This is because these products either create a leveraged long/short position, an inverse long/short position or a leveraged inverse long/short position in the underlying index through the use of swaps, options, futures contracts and other financial instruments (read: Don't Fear Market Woes: Profit from These ETFs).

Due to their compounding effect, investors can enjoy higher returns in a very short period of time provided the trend remains a friend. However, these funds run the risk of huge losses compared to traditional funds in fluctuating or erratic markets. Further, their performance could vary significantly from the actual performance of their underlying index over a longer period when compared to a shorter period (such as, weeks or months).

Despite this drawback, investors jumped into these products for quick turns. We have profiled 10 leveraged/inverse ETFs that have seen massive trading volumes over the past 100 days, as per barchart.com. Most of these ETFs might have delivered negative returns from a year-to-date look, yet have been investors’ darlings with abnormal returns piled up in a short period or when the trend favored a specific corner of the world (see: all Leveraged Equity ETFs here).

VelocityShares Daily Inverse VIX Short-Term ETN XIV

Leveraged Factor: 1x
Inverse: Yes
Benchmark Index: S&P 500 VIX Short-Term Futures Index
100-Day Average Volume Ratio: 796.3%

With AUM of $892.1 million, this ETN is popular and offers inverse (opposite) exposure to the S&P 500 VIX Short-Term Futures Index, charging a higher expense ratio of 1.35%. The note has a massive 100-day average trading volume of 796.3% of shares outstanding and has gained 9.9% year to date.  

ProShares Short VIX Short-Term Futures ETF SVXY

Leveraged Factor: 1x
Inverse: Yes
Benchmark Index: S&P 500 VIX Short-Term Futures Index
100-Day Average Volume Ratio: 694.2%

Like XIV, this fund also offers inverse exposure to the S&P 500 VIX Short-Term Futures Index. It charges 95 bps in annual fees per year from investors and exchanged about 694.2% shares on average over the past 100 days. The fund has accumulated $578.1 million in its asset base and has added 9.4% so far this year (read: Volatility ETFs: Buy or Sell Now?).

Daily Gold Miners Bull 3x shares NUGT

Leveraged Factor: 3x
Inverse: No
Benchmark Index: NYSE Arca GoldMiners Index
100-Day Average Volume Ratio: 623.1%

This product seeks to deliver thrice the daily performance of the NYSE Arca Gold Miners Index, which consists of firms that operate globally in both developed and emerging markets, and are involved primarily in the exploration and production of gold. It is rich in AUM of $1.4 billion and saw solid trading volume of 623% over the past 100 days. Expense ratio comes in at 0.94%. The fund has delivered whopping returns of 286% year to date.

Direxion Daily Small Cap Bull 3x Shares TNA

Leveraged Factor: 3x
Inverse: No
Benchmark Index: Russell 2000 Index
100-Day Average Volume Ratio: 550.7%

This product provides triple leveraged play to the small cap Russell 2000 Index, charging 95 bps in fees and expenses. It has been able to manage $01.6 million in its asset base with a 100-day average volume ratio of 550.7%. TNA has added 0.8% so far this year (read: Market on Rise: 5 Small Cap ETFs Leading The Way).

ProShares Ultra VIX Short-Term Futures ETF UVXY

Leveraged Factor: 2x
Inverse: No
Benchmark Index: S&P 500 VIX Short-Term Futures Index
100-Day Average Volume Ratio: 540.0%

This product provides two times exposure to the daily performance of the S&P 500 VIX Short-Term Futures Index. It has amassed about $830.4 million in its asset base while charges 95 bps in fees per year from investors. It saw solid trading volume of 540% over the past 100 days. The fund has delivered negative returns of 57.4% in the year-to-date timeframe.

VelocityShares 3x Long Crude Oil ETN UWTI

Leveraged Factor: 3x
Inverse: No
Benchmark Index: S&P GSCI Crude Oil Index Excess Return
100-Day Average Volume Ratio: 511.5%

This is the popular leveraged fund targeting the energy segment of the commodity market through WTI crude oil futures contracts. It seeks to deliver thrice the returns of the S&P GSCI Crude Oil Index Excess Return and has amassed $1.2 billion in its asset base. Though the fund charges a higher fee of 1.35% per year, its 100-day average volume ratio of 511.5% is incredible. UWTI is down about 8.8% in the year-to-date time frame.

Direxion Daily Gold Miners Index Bear 3x Shares DUST

Leveraged Factor: 3x
Inverse: Yes
Benchmark Index: NYSE Arca GoldMiners Index
100-Day Average Volume Ratio: 387.9%

This product seeks to deliver thrice the inverse daily performance of the NYSE Arca Gold Miners Index. The fund has amassed $299.2 million in its asset base and trades in a 100-day average volume ratio of nearly 388%. It charges investors 95 bps in annual fees and expenses. The ETF has shed 93.3% so far this year (read: Will New SEC Rules Hurt Triple Leveraged ETFs?).

VelocityShares 3x Inverse Natural Gas ETN DGAZ

Leveraged Factor: 3x
Inverse: Yes
Benchmark Index: S&P GSCI Natural Gas Index Excess Return
100-Day Average Volume Ratio: 364.3%

This fund targets the natural gas segment of the commodity market through natural gas futures contracts. It seeks to deliver thrice the returns of the S&P GSCI Natural Gas Index Excess Return and has accumulated $107.5 million in its asset base. The product charges a higher fee of 1.65% per year and saw solid trading volume of 364% over the past 100 days. DGAZ is down about 35.5% in the year-to-date time frame.

ProShares UltraPro QQQ TQQQ

Leveraged Factor: 3x
Inverse: No
Benchmark Index: NASDAQ-100 Index
100-Day Average Volume Ratio: 346.8%

This ETF provides three times the return of the daily performance of the NASDAQ-100 Index and exchanged around 346.8% shares in hand on average over the past 100 days. The fund has AUM of $1.1 billion and charges 95 bps in fees and expenses. It has lost 14.9% so far in the year.

Direxion Daily Small Cap Bear 3x Shares TZA

Leveraged Factor: 3x
Inverse: Yes
Benchmark Index: Russell 2000 Index
100-Day Average Volume Ratio: 277.5%

This product provides triple leveraged inverse play to the small cap Russell 2000 Index, charging 95 bps in fees and expenses. It has been able to manage $575.9 million in its asset base with a 100-day average volume ratio of 277.5%. TZA is down 18.2% so far this year.