ETFs Last Week: Thematic ETFs Gleamed Against Market Gloom

A few thematic and leveraged ETFs shone last week, posting solid gains as other markets retreated due to worries over geopolitics and macroeconomic uncertainty. Across the spectrum, from biotech and streaming to crypto and transportation, some funds flashed decent returns.

T-Rex 2X Long DJT Daily Target ETF DJTU jumped 33.5%, the week’s best performer as the Dow Jones Transportation Average recovered on Thursday.

Defiance Daily Target 2X Long LLY ETF LLYX rose 22.3% as Eli Lilly LLY shares soared 11.34%. Investors remain optimistic about the company’s blockbuster weight-loss and diabetes medications, which continue to drive revenue growth and provide robust forward guidance.

Direxion Daily NFLX Bull 2X Shares NFXL gained 8.8%, echoing the robust quarterly performance of Netflix NFLX. The streaming behemoth surpassed Wall Street expectations, with the increase in its ad-supported plan and better content performance providing bulls a reason to rejoice.

SPDR Galaxy Digital Asset Ecosystem ETF DECO gained 5.5% as stabilizing Bitcoin prices and increasing institutional interest in digital asset infrastructure supported it. Favorable sentiment in the overall crypto market helped support the fund’s holdings in blockchain and crypto-exposed assets.

Yieldmax MSTR Option Income Strategy ETF MSTY increased by 3%, taking advantage of MicroStrategy’s MSTR solid performance and consistent returns earned from its options-based income strategy based on Bitcoin.

These ETF profits were impressive compared to the broader market’s losses during the last holiday-shortened week.

What Happened In The Markets Last Week

Markets were rattled by fresh geopolitical tensions and hawkish central bank commentary. The largest drag was from the technology sector, following Nvidia Corp.’s NVDA announcement that it had been informed by the Trump administration that exports of its H20 AI chip to China would need a license. The firm warned that the export controls would lower earnings by $5.5 billion, pushing its shares down 8.5%. The news also affected the wider chip industry, with the iShares Semiconductor ETF SOXX losing 3%—its seventh loss in the last eight weeks.

Earnings were mixed. While banks and Netflix reported positive results, UnitedHealth Group UNH surprised markets by cutting its full-year forecast. The stock lost 22.4% in one session—the worst one-day decline for the insurer since 1998.

On the trade side, Canada temporarily paused counter measure tariffs on critical U.S. imports to relieve cross-border supply chain stress—most notably helping Midwest-based auto manufacturers.

Meanwhile, Federal Reserve Chairman Jerome Powell again expressed reluctance to cut interest rates, citing lingering inflation and risks to trade-driven growth. President Donald Trump condemned the move, calling Powell “always too late” and threatening to fire him before his term ends in May 2026. Trump spoke against a backdrop of irritation over the European Central Bank’s sixth consecutive interest rate reduction, further amplifying the divergence of monetary policies in developed nations.

Against this background of policy uncertainty and volatility, gold was the shining star. The SPDR Gold Trust GLD jumped to an all-time high of $3,330 per ounce, recording gains in 14 of the last 16 weeks, as investors flocked to the yellow metal for safety.

While headwinds beset the overall market, last week’s ETF action highlights where momentum—and investor confidence—is still present.

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