Which Sector Topped the Leaderboard for January Returns?
Etftrends·2026-02-03 21:41

Core Insights - The energy sector topped the leaderboard for total returns in January 2026, indicating strong performance and potential investment opportunities [1] - The rise in demand for electricity, driven by the expansion of AI infrastructure, is positively impacting energy stocks [1] - Various leveraged ETFs are available for traders to capitalize on sector movements, including both bullish and bearish options [1] Sector Performance - The energy sector was the best-performing sector through January 29, 2026, suggesting a favorable environment for investments in energy-related ETFs like Direxion Daily Energy Bull 3X Shares (ERX) and Direxion Daily Energy Bear 2X Shares (ERY) [1] - Other top sectors included materials, industrials, consumer staples, and communications, with specific ETFs available for traders looking to leverage these sectors [1] Investment Opportunities - For targeted exposure to the energy sector, the Direxion Daily Energy Top 5 Bull 2X ETF (TEXU) offers 200% performance of the S&P 500 Energy Top 5 Equal Capped Index [1] - Traders interested in industrials can consider the Direxion Daily Industrials Bull 3X Shares (DUSL) for leveraged exposure [1] Contrarian Strategies - Sectors that underperformed, such as information technology, healthcare, and financials, may present bounce-back opportunities in February [1] - Traders with high conviction in a rebound can utilize ETFs like Direxion Daily Technology Bull 3X ETF (TECL), Direxion Daily Healthcare Bull 3X ETF (CURE), or Direxion Daily Financial Bull 3X ETF (FAS) [1] - For bearish strategies, Direxion Daily Technology Bear 3X Shares (TECS) and Direxion Daily Financial Bear 3X ETF (FAZ) are available [1]

Which Sector Topped the Leaderboard for January Returns? - Reportify