The debut of DRIP, Direxion’s new bearish oil ETF, could be well-timed as the energy sector is entering a weak seasonal period. Looking at energy sector seasonality, the end of May represents what is, historically, the sector’s best stretch while June is usually unkind to oil stocks. June is usually the worst month of the year for the Energy Select Sector SPDR (NYSEArca: XLE).
Direxion is no stranger to leveraged energy equity ETFs as the firm issues, among others, the Direxion Daily Energy Bull 3X Shares (NYSEArca: ERX) and the Direxion Daily Energy Bear 3X Shares (NYSEArca: ERY). ERX and ERY are the triple-leveraged answers to XLE.
S&P Oil & Gas Exploration & Production Select Industry Index
Tables Courtesy: Direxion