Cash has pouring into DUST. To be precise, $26.6 million last Friday, the same day almost $27 million was pulled from the Direxion Daily Gold Miners Bull 3X Shares (NYSEArca: NUGT). Another $29.1 million went into DUST Monday as almost $38 million was yanked from NUGT and onTuesday, DUST’s creation activity totaled almost $32.5 million while $11.7 million in NUGT shares were redeemed, according to Direxion data.
The chart at below shows the 30-day net value of creation and redemption activity at various Direxion ETFs. Note DUST is positive while NUGT is negative. That despite DUST being the second-worst leveraged ETF in Direxion’s lineup this month and the second-most volatile over the past 30 days.
Inflows to leveraged ETFs are not foolproof in terms of telling traders where to go. There is, after all, no such thing as a free lunch in financial markets. However, the flows into DUST are interesting to observe, particularly a day before nearly 30% of GDX’s weight delivers earnings.