WEBS Quote - Direxion Daily Dow Jones Internet Bear 3x Shares ETF Fund - Bloomberg (2024)

FAQs

What is Dow Jones Bear 3X? ›

Direxion Daily Dow Jones Internet Bear 3X Shares ETF is an exchange traded fund incorporated in the USA. The Fund seeks daily investment results, before fees and expenses, of 300% of the inverse (or opposite) of the daily performance of the Dow Jones Internet Composite Index.

About Direxion Daily Dow Jones Int Bl 3X ETF

The index includes companies that generate at least 50% of their annual sales/revenue from the internet as determined by the index provider. It is non-diversified. It is non-diversified. Low commission rates start at $0 for U.S. listed stocks & ETFs*.

The Direxion Daily S&P 500^® Bull and Bear 3X Shares seek daily investment results, before fees and expenses, of 300%, or 300% of the inverse (or opposite), of the performance of the S&P 500® Index.

These leveraged ETFs seek a return that is 300% or -300% of the return of their benchmark index for a single day. The funds should not be expected to provide three times or negative three times the return of the benchmark's cumulative return for periods greater than a day.

Of course, once you begin investing, don't expect to see immediate returns amid a bear market. Instead, focus on positioning your portfolio for the next bull market. Although most stocks and sectors may fall during a bear cycle, some will buck the trend.

3x ETFs get their leverage by using derivatives, which introduce another set of risks. Since they maintain a fixed level of leverage, 3x ETFs eventually face complete collapse if the underlying index declines more than 33% on a single day.

Bottom Line on Leveraged ETFs

Leveraged ETFs decay due to the compounding effect of daily returns, volatility of the market and the cost of leverage. The volatility drag of leveraged ETFs means that losses in the ETF can be magnified over time and they are not suitable for long-term investments.

Direxion Daily S&P 500 Bull 2X Shares. The Direxion Daily S&P 500^® Bull 2X Shares seeks daily investment results, before fees and expenses, of 200% of the performance of the S&P 500^® Index.

Which is better 3X or 2X leveraged ETF? ›

Daily Leveraged ETFs aim to amplify the daily returns of an underlying asset, typically by a factor of 2X or 3X. In other words, if the asset increases by 1% on a given day, a 2X Leveraged ETF seeks to deliver a 2% return – and a 3X Leveraged ETF aims for a 3% return – before fees and expenses, in a single trading day.

What Does It Mean When an ETF Is Leveraged 3x? An ETF that is leveraged 3x seeks to return three times the return of the index or other benchmark that it tracks. A 3x S&P 500 index ETF, for instance, would return +3% if the S&P rose by 1%.

A 3X ETF is a leveraged ETF that gives you leveraged exposure to a particular underlying asset or index. The use of '3X' in the name indicates that the ETF attempts to provide three times the daily returns of the underlying asset or index it tracks.

Leveraged 2X ETFs are funds that track a wide variety of asset classes, such as stocks, bonds or commodity futures, and apply leverage in order to gain two times the daily or monthly return of the underlying index.

We think of the three bear market categories as being: (i) structural, (ii) event based, and (iii) periodic. Event based bear markets, the second type, are very different. These are the shortest in duration and are caused by, you guessed it, a specific and usually unforeseen event.