Gold’s ascent has been a bone for scores of exchange traded funds, including those that track gold miners equities. Prime beneficiaries of that trend include the popular Direxion Daily Gold Miners Bull 3X Shares (NYSEArca: NUGT) and its small-cap equivalent, the Direxion Daily Junior Gold Miners Index Bull 3x Shares (NYSEArca: JNUG).
However, NUGT and JNUG’s bearish cousins have been savagely punished this year, meaning they will soon be undergoing reverse splits.
In a statement out Friday after the close of U.S. markets, Direxion, the second-largest U.S. issuer of inverse and leveraged ETFs, said the Direxion Daily Gold Miners Bear 3X Shares (NYSEArca: DUST) and the Direxion Daily Junior Gold Miners Bear 3X Shares (NYSEArca: JDST) will undergo 1-for-10 reverse splits that become effective on May 18.
Thanks to soaring gold prices, DUST and JDST are down an average of about 87.5% year-to-date. The combined closing prices of the two bearish miners ETFs on Friday was barely more than $5.50.[related_stories]
Direxion Daily Gold Miners Bear 3X Shares