The Direxion Daily S&P 500® Bull (SPXL) and Bear (SPXS) 3X Shares seeks 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. There is no guarantee the funds will meet their stated investment objectives.
Similarly, What stocks make up SPXL?
Top 5 Holdings
| Company | Symbol | Total Net Assets |
|---|---|---|
| iShares Core S&P 500 ETF | IVV | 72.01% |
| Dreyfus Government Cash Management Institutional Shs | DGCXX | 18.61% |
| Financial Square Treasury Instruments Fund FST Shares | FTIXX | 10.31% |
| Dreyfus Treasury Securities Cash Management Institutional Shares | DIRXX | 7.20% |
Is SPXL a good ETF? Summary. SPXL is a 3x leveraged S&P 500 ETF that provides great reward at the cost of great risk. Back-tests show that SPXL can be held long term and beats the S&P 500 in most cases but during protracted bear markets would nearly wipe out a portfolio.
Thereof, Is SPXL a good long term investment?
The SPXL is designed to generate three times the return of the S&P 500 each day. On the surface, that leverage may seem like great news. S&P 500 ETFs like the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) are widely considered to be some of the best long-term investments available.
What is the best 3X leveraged ETF?
The 9 Best Leveraged ETFs
- TQQQ – ProShares UltraPro QQQ. …
- QLD – ProShares Ultra QQQ. …
- TECL – Direxion Daily Technology Bull 3X Shares. …
- SSO – ProShares Ultra S&P 500. …
- UPRO – ProShares UltraPro S&P 500. …
- SPXU – ProShares UltraPro Short S&P 500. …
- TNA – Direxion Daily Small Cap Bull 3X Shares.
How risky is SPXL?
And that’s where the risk of these funds comes in. The fund may be designed to produce a 3X gain when the S&P 500 goes up, but it can also produce a 3X loss when the index goes down. Going into Memorial Day weekend, the S&P 500 is down 8.74% for the year. However shares of SPXL stock are down nearly 44%.
What are 3X leveraged ETFs?
Leveraged 3X ETFs are funds that track a wide variety of asset classes, such as stocks, bonds and commodity futures, and apply leverage in order to gain three times the daily or monthly return of the respective underlying index. Such ETFs come in the long and short varieties.
Is SPXL an index fund?
SPXL Fund Description
SPXL provides daily leveraged exposure to a market-cap-weighted index of 500 large-cap and mid-cap US companies selected by the S&P Committee.
How long should you hold a 3x ETF?
A trader can hold the majority of these ETFs including TQQQ, FAS, TNA, SPXL, ERX, SOXL, TECL, USLV, EDC, and YINN for 150-250 days before suffering a 5% underperformance although a few, like NUGT, JNUG, UGAZ, UWT, and LABU are more volatile and suffer a 5% underperformance in less than 130 days and, in the case of JNUG …
What is the difference between spy and SPXL?
SPXL has a 1.02% expense ratio, which is higher than SPY’s 0.09% expense ratio. Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which one is better suits your portfolio: SPXL or SPY.
How long should you hold a leveraged ETF?
A trader can hold the majority of these ETFs including TQQQ, FAS, TNA, SPXL, ERX, SOXL, TECL, USLV, EDC, and YINN for 150-250 days before suffering a 5% underperformance although a few, like NUGT, JNUG, UGAZ, UWT, and LABU are more volatile and suffer a 5% underperformance in less than 130 days and, in the case of JNUG …
How does Upro ETF work?
What UPRO Does. UPRO is a leveraged ETF. It seeks to replicate the daily movements of the S&P 500 multiplied by a factor of three by using financial derivatives and debt. For example, if the S&P 500 increased by 2% in a day, UPRO’s price should increase by three times that amount (6%).
How do you determine an Eeveraged ETF?
A leveraged exchange-traded fund (ETF) uses financial derivatives and debt to amplify the returns of an underlying index. While a traditional ETF typically tracks the securities in its underlying index on a one-to-one basis, a leveraged ETF may aim for a 2:1 or 3:1 ratio.
Can I hold Soxl long term?
Therefore, SOXL is only suitable for investors with experience and willing to take on high risks. Like any other leveraged ETFs, SOXL is not suitable to own in the long-term.
What is a 2X ETF?
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.
What is Tqqq ETF?
The TQQQ is a 3x leveraged ETF based on the QQQ (a Nasdaq 100 index ETF). Because it is leveraged, it uses derivatives contracts to amplify its returns based on how the index performs. As such, it does not actually hold the shares of any companies. Instead, the unleveraged QQQ itself owns the companies in the index.
Are leveraged ETFs safe?
Triple-leveraged (3x) exchange-traded funds (ETFs) come with considerable risk and are not appropriate for long-term investing. Compounding can cause large losses for 3x ETFs during volatile markets, such as U.S. stocks in the first half of 2020.
How does the SPXL work?
A fund such as SPXL uses derivatives and swaps to attain leverage. Those exposures are reset on a daily basis to ensure that when the next trading day arrives, the ETF in question does what it’s supposed to do. To the credit of issuers of these products, such as Direxion, they don’t run away from the daily resets.
What is the expense ratio of SPXL?
Portfolio Fundamentals
| Valuation Info | SPXL | Asset Class Median |
|---|---|---|
| 30-day SEC Yield AS OF — | — | 1.24% |
| Dividend Yield (Annualized) | 0.23% | n/a |
| Net Expense Ratio | 0.97% | 0.57% |
| Gross Expense Ratio | 0.97% | 0.58% |
What is the highest leveraged ETF?
1 The most traded leveraged ETF, based on three-month average daily trading volume, is the ProShares UltraPro QQQ (TQQQ).
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