Direxion Daily Cnsmr Discret Bull 3XShrs (WANT)

Overview

The Direxion Daily Consumer Discretionary Bull 3X Shares (WANT) seeks daily investment results, before fees and expenses, of 300% of the performance of the Consumer Discretionary Select Sector Index. It primarily focuses on the consumer discretionary sector, employing a leveraged strategy to amplify returns. Asset allocation is heavily concentrated in the consumer discretionary sector, with the investment strategy centered around achieving triple the daily performance of the underlying index.

Reputation and Reliability

Direxion is a well-known issuer of leveraged and inverse ETFs, with a generally reliable track record in delivering on its stated objectives, though leveraged products inherently carry higher risk.

Management Expertise

Direxion's management team has experience in managing leveraged and inverse ETFs, understanding the complexities of daily rebalancing and derivative usage.

Goal

To seek daily investment results, before fees and expenses, of 300% of the performance of the Consumer Discretionary Select Sector Index.

Investment Approach and Strategy

Strategy: Tracks 3x the daily performance of the Consumer Discretionary Select Sector Index.

Composition Primarily holds derivative instruments (swaps, futures contracts) to achieve its leveraged exposure to the stocks within the Consumer Discretionary Select Sector Index.

Market Share: Insufficient data to calculate precise market share.

Total Net Assets (AUM): 24090000

Key Competitors

• ProShares Ultra Consumer Discretionary (UCD)
• Consumer Discretionary Select Sector SPDR Fund (XLY)

Competitive Landscape

The competitive landscape involves both leveraged and non-leveraged consumer discretionary ETFs. WANT offers significantly higher potential returns (and losses) due to its 3x leverage, which is a substantial advantage for aggressive short-term traders. However, the inherent risks and volatility may discourage long-term or risk-averse investors. In contrast, non-leveraged ETFs, such as XLY, are generally less volatile.

Historical Performance: Historical performance is highly volatile due to the leveraged nature of the ETF. Long-term returns are significantly affected by daily compounding and market fluctuations.

Benchmark Comparison: The ETF aims to provide 3x the *daily* performance of its benchmark. Over longer periods, compounding effects can cause significant deviations from 3x the benchmark's cumulative return.

Expense Ratio: 0.95

Average Trading Volume

Average trading volume can fluctuate but generally provides sufficient liquidity for most retail investors.

Bid-Ask Spread

The bid-ask spread can be wider than non-leveraged ETFs, especially during periods of high volatility, potentially increasing trading costs.

Market Environment Factors

Economic growth, consumer confidence, interest rates, and retail sales data significantly affect WANT. Positive economic indicators and consumer sentiment generally support the consumer discretionary sector.

Growth Trajectory

Growth depends on the overall performance of the consumer discretionary sector and the demand for leveraged investment products. Strategy and holdings remain consistent as the ETF aims to replicate three times the daily return.

Competitive Edge

WANT's primary advantage is its 3x leveraged exposure, offering the potential for amplified returns in the consumer discretionary sector. This high leverage caters to traders seeking short-term gains. However, it is important to recognize its higher risk and potential for magnified losses, especially when compared to non-leveraged competitors. The ETF is also less suitable for long-term investments, and should be used by sophisticated investors with a high tolerance for risk. Finally, Direxion's proven experience in managing similar leveraged ETFs adds a degree of reliability to the fund's operations.

Volatility

The ETF exhibits high volatility due to its leveraged nature. Daily rebalancing to maintain the 3x leverage can lead to significant fluctuations.

Market Risk

The ETF is susceptible to market risk associated with the consumer discretionary sector, including economic downturns, changes in consumer spending habits, and sector-specific events.

Ideal Investor Profile

The ideal investor is an experienced, sophisticated trader with a high-risk tolerance, seeking short-term gains, and possessing a strong understanding of leveraged ETFs and their associated risks.

Market Risk

The ETF is best suited for active traders and short-term tactical positions, not for long-term investors or passive index followers.

Direxion Daily Consumer Discretionary Bull 3X Shares (WANT) is a leveraged ETF designed for short-term trading in the consumer discretionary sector. It aims to deliver three times the daily performance of the Consumer Discretionary Select Sector Index, offering significant potential gains but also substantial risks. Due to its leveraged structure, the ETF is highly volatile and susceptible to market fluctuations. It is only suitable for experienced traders with a high-risk tolerance and should not be considered a long-term investment. The high expense ratio also reduces returns.

Data Sources:

• Direxion Investments website
• ETF.com
• Yahoo Finance

Disclaimers:

The data and analysis provided are for informational purposes only and do not constitute investment advice. Leveraged ETFs are complex financial instruments and should be fully understood before investing. Past performance is not indicative of future results.