Direxion Daily S&P 500® High Beta Bear 3X Shares (HIBS)

Overview

The Direxion Daily S&P 500u00ae High Beta Bear 3X Shares (HIBS) seeks daily investment results, before fees and expenses, of 300% of the inverse (or opposite) of the daily performance of the S&P 500u00ae High Beta Index. HIBS is designed for sophisticated investors who understand the risks associated with leveraged and inverse ETFs. It is not intended for long-term investing.

Reputation and Reliability

Direxion is a well-known issuer specializing in leveraged and inverse ETFs. They are generally considered reliable but high risk due to the nature of their products.

Management Expertise

Direxion has a dedicated team experienced in managing leveraged and inverse ETFs, requiring expertise in derivatives and short-term trading strategies.

Goal

To seek daily investment results, before fees and expenses, of 300% of the inverse (or opposite) of the daily performance of the S&P 500u00ae High Beta Index.

Investment Approach and Strategy

Strategy: The ETF employs a leveraged inverse strategy, aiming to deliver three times the inverse of the daily performance of the S&P 500 High Beta Index. It uses derivatives, primarily swap agreements, to achieve its leveraged exposure.

Composition The ETF's assets primarily consist of financial instruments like swap agreements designed to provide the leveraged inverse exposure. It also holds cash and cash equivalents.

Market Share: HIBS has a limited market share within the leveraged/inverse ETF space, specifically focusing on S&P 500 high beta exposure.

Total Net Assets (AUM): 35.75

Key Competitors

• ProShares UltraShort S&P500 (SDS)
• ProShares Short S&P500 (SH)
• ProShares UltraPro Short S&P500 (SPXU)

Competitive Landscape

The competitive landscape is dominated by ProShares offerings. HIBS offers a narrower focus on high beta stocks and has the potential to deliver higher returns, while competitors offer inverse exposure to the entire S&P 500.

Historical Performance: Historical performance is highly volatile and subject to the effects of compounding, which can significantly deviate from the stated 3x inverse daily objective over longer periods.

Benchmark Comparison: The ETF aims to mirror the inverse performance of its benchmark, but performance may differ due to fees, expenses, and compounding effects. The benchmark is S&P 500 High Beta Index.

Expense Ratio: 1.17

Average Trading Volume

The ETF demonstrates average liquidity as it is consistently traded, which facilitates buying and selling without causing severe price fluctuations.

Bid-Ask Spread

The bid-ask spread can vary but generally reflects the ETF's trading volume and underlying market volatility.

Market Environment Factors

Market volatility, interest rates, and investor sentiment toward high-beta stocks significantly influence HIBS's performance. Expect higher volatility in turbulent markets.

Growth Trajectory

HIBS's growth trajectory depends on short-term market trends and investor appetite for leveraged inverse products. The growth is expected to be high during downtrends and low during uptrends.

Competitive Edge

HIBS offers investors a highly leveraged way to profit from declines in the S&P 500 High Beta Index. This targeted approach distinguishes it from broader market inverse ETFs. Its focus on high-beta stocks allows for potentially greater returns. However, the high leverage and volatility also introduce significant risks and are not suitable for all investors.

Volatility

HIBS exhibits extremely high volatility due to its 3x leverage and inverse strategy.

Market Risk

HIBS is subject to significant market risk, including the risk of principal loss, especially over longer holding periods due to compounding effects. Investing in HIBS is only suitable for those with high-risk tolerance.

Ideal Investor Profile

Sophisticated traders with a high-risk tolerance who understand the complexities of leveraged and inverse ETFs. It's intended for short-term tactical trades to profit from anticipated declines in the S&P 500 High Beta Index.

Market Risk

HIBS is best suited for active traders seeking short-term gains and not for long-term investors.

HIBS is a leveraged inverse ETF designed for short-term tactical trading, offering three times the inverse daily performance of the S&P 500 High Beta Index. It carries significant risks and is only suitable for sophisticated investors with a high-risk tolerance. Due to compounding, it is not intended for long-term holding. Its performance is highly volatile and dependent on short-term market movements, and it should be used with a clear understanding of its leveraged inverse structure.

Data Sources:

• DirexionShares.com
• Yahoo Finance
• Investopedia

Disclaimers:

The information provided is for informational purposes only and does not constitute financial advice. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor. Leveraged and inverse ETFs are complex instruments and involve a high degree of risk.