The month of August was strong for the U.S. stock market with the Dow Jones and the S&P 500 notching their best performances for the month since 2014, climbing 2.1% and 3%, respectively. Notably, the S&P 500 topped a new milestone of 2,900. The Nasdaq Composite also logged its best August since 2000, with gains of 5.7%.

Most of the gains were driven by the renewed surge in broader technology sector and the trade deal between the United States and Mexico, which the paves way for the replacement of North American Free Trade Agreement (NAFTA) and optimism about a deal with Canada. Additionally, strong corporate earnings and a slew of upbeat data, which underscores strengthening of the economy, led to a risk-on trade.

This has resulted in a strong demand for leveraged ETFs as investors seek to register big gains in a short span. Leveraged funds provide multiple exposures (i.e. 2x or 3x) to the daily performance of the underlying index by employing various investment strategies such as swaps, futures contracts, and other derivative instruments. Due to their compounding effect, investors can enjoy higher returns in a very short period of time, provided the trend remains a friend.

Below, we have highlighted five ETFs that have piled up abnormal returns in August. These funds will continue to be investors’ darling provided the sentiments remain the same.

Direxion Daily S&P Biotech Bull 3x Shares (LABU – Free Report) – Up 17.7%

This fund creates a 3x leveraged long position in the S&P Biotechnology Select Industry Index. It charges an annual fee of 95 bps and trades in a heavy average daily volume of about 1.1 million shares. The fund has accumulated AUM of $441.9 million.

ProShares Ultra Telecommunications (LTL – Free Report) – Up 12.2%

This product provides two times exposure to the daily performance of the Dow Jones U.S. Select Telecommunications Index. It has been able to manage $1.1 million in its asset base and trades in lower volume of about 1,000 shares per day on average. Expense ratio is 0.95%.