A 3X Industrial ETF for Earnings Excitement

Not to be lost in the commotion surrounding this week’s spate of third-quarter earnings reports from the financial services and healthcare sectors is the industrial sector.

With earnings season for industrial stocks kicking off in earnest this week, the Direxion Daily Industrials Bull 3X Shares (NYSEARCA: DUSL) is an idea to consider for risk-tolerant, short-term traders. DUSL tries to deliver triple the daily returns of the S&P Industrial Select Sector Index.

The ongoing uncertainty over the Trump administration’s trade policy threatens to slow corporate spending and drive up costs, which could weigh heavily on the industrial sector, with the tariff-sensitive S&P 500 industrial sectors continuing to underperform the broader market.

A Source Of Strength

While the broader industrial sector is lagging broader equity benchmarks this year, the aerospace and defense group remains a source of strength for the sector. DUSL’s underlying index allocates over 28% of its weight to aerospace and defense stocks, by far the benchmark’s largest industry exposure.

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Aerospace and defense stocks are part of the broader industrial sector and have been important drivers of the sector’s performance over the past year. In fact, aerospace and defense names have been industrial leaders.