Traders understand that when you add leverage to the mix, the results can be explosive gains, but on the flip side, it could be losses and a blown trading account. Yahoo Finance focused on top leveraged ETF performers and three of the funds featured Direxion Investments products.
Direxion Daily S&P Biotech Bull 3x Shares (LABU) – Up 98%
LABU seeks daily investment results of 300% of the daily performance of the S&P Biotechnology Select Industry Index (“index”). The fund invests at least 80% of its net assets (plus borrowing for investment purposes) in financial instruments and securities of the index, ETFs that track the index, and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index.
The index is designed to measure the performance of the biotechnology sub-industry based on the Global Industry Classification Standards (“GICS”).
“This fund creates a three times leveraged long position on 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 1.2 million shares. The fund has AUM of $330.3 million (read: 7 Leveraged ETFs of November With Spectacular Returns),” the article said.
Direxion Daily CSI 300 China A Share Bull 2X Shares (CHAU) – Up 58%
CHAU seeks daily investment results equal to 200% of the daily performance of the CSI 300 Index. The fund invests at least 80% of its net assets (plus borrowing for investment purposes) in financial instruments, such as swap agreements, and securities of the index, ETFs that track the index, and other financial instruments that provide daily leveraged exposure to the index or to ETFs that track the index.
The index is a modified free-float market capitalization weighted index comprised of the largest and most liquid stocks in the Chinese A-share market
“This product targets the Chinese equity market and offers two times the exposure to the CSI 300 Index, charging investors 95 bps in annual fees. It has AUM of $125.5 million and an average daily volume of 124,000 shares,” the article noted.
Direxion Daily Retail Bull 3X Shares (RETL) – Up 55%
RETL seeks daily investment results equal to 300% of the daily performance of the S&P Retail Select Industry Index. The fund invests at least 80% of its net assets (plus borrowing for investment purposes) in financial instruments and securities of the index, ETFs that track the index and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index.
The index is a modified equal-weighted index that is designed to measure performance of the stocks comprising the S&P Total Market Index that are classified in the GICS retail sub-industry.
“This ETF offers three times leveraged exposure to the S&P Retail Select Industry Index. The product has amassed about $60.3 million in its asset base, while charging 95 bps in fees per year. Its volume is lower as it exchanges around 11,000 shares a day on average,” the article explained.
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