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 daily performance of the Consumer Discretionary Select Sector Index. It aims to provide leveraged exposure to U.S. consumer discretionary companies.

Reputation and Reliability

Direxion is known for providing leveraged and inverse ETFs, a higher-risk investment strategy. They are generally considered a reputable issuer with a wide range of specialized products.

Management Expertise

Direxion has a dedicated team managing leveraged ETFs, requiring expertise in derivatives and daily rebalancing strategies.

Goal

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

Investment Approach and Strategy

Strategy: The ETF employs a leveraged strategy using derivatives, primarily swaps, to achieve its 3x daily return objective. It is not designed for long-term investment.

Composition The ETF's composition primarily consists of financial derivative instruments such as swap agreements and futures contracts that aim to replicate the leveraged returns of the Consumer Discretionary Select Sector Index. It also holds a small portion in cash.

Market Share: Data is not available to calculate WANT's exact market share within the leveraged consumer discretionary ETF category.

Total Net Assets (AUM): 51770000

Key Competitors

• ProShares Ultra Consumer Discretionary (UCC)

Competitive Landscape

The leveraged ETF market is competitive, with several providers offering similar products. WANT differentiates itself through its specific index tracking and leverage factor. Investors should consider fees, tracking error, and liquidity when choosing between leveraged ETFs. WANT's advantage lies in its higher leverage but this is also its disadvantage because it brings much higher risk.

Historical Performance: Historical performance is highly volatile due to the leveraged nature of the ETF. Past performance is not indicative of future results.

Benchmark Comparison: The ETF aims to deliver 3x the daily performance of the Consumer Discretionary Select Sector Index. Performance can deviate due to fees, expenses, and the compounding effect of daily rebalancing.

Expense Ratio: 0.95

Average Trading Volume

The average trading volume of WANT is moderate, impacting the ease of buying and selling shares, especially in large quantities.

Bid-Ask Spread

The bid-ask spread can fluctuate depending on market conditions and trading volume, which affects the cost of trading.

Market Environment Factors

Consumer spending, economic growth, interest rates, and consumer confidence significantly impact the performance of the Consumer Discretionary sector and, consequently, WANT. Changes in these factors could lead to significant changes in the value of holdings.

Growth Trajectory

The growth trajectory of WANT depends on the performance of the underlying Consumer Discretionary sector and investor appetite for leveraged products. There is a considerable risk that performance might be very negative.

Competitive Edge

WANT's competitive edge is primarily its 3x leverage on the Consumer Discretionary Select Sector Index, appealing to traders seeking amplified short-term gains. The ETF offers exposure to the consumer discretionary sector with significantly enhanced return potential. However, this is accompanied by increased risk, especially in volatile markets. This focus provides a niche offering in the ETF market but is not well-suited to long-term investment.

Volatility

WANT is highly volatile due to its leveraged structure. Investors should expect significant price fluctuations.

Market Risk

WANT is subject to market risk related to the Consumer Discretionary sector, as well as the risks associated with leveraged investments, including the potential for magnified losses.

Ideal Investor Profile

WANT is suitable for sophisticated investors with a high-risk tolerance who understand the complexities of leveraged ETFs and are seeking short-term trading opportunities. It is designed for experienced traders.

Market Risk

WANT is best suited for active traders with a short-term investment horizon, not long-term investors.

Direxion Daily Consumer Discretionary Bull 3X Shares (WANT) is a leveraged ETF designed to deliver three times the daily performance of the Consumer Discretionary Select Sector Index. It is a high-risk, high-reward investment suitable for experienced traders seeking short-term gains in the consumer discretionary sector. Due to its daily reset and leverage, it is not suitable for long-term investment because of compounding. Investors should be aware of the risks associated with leveraged ETFs, including the potential for significant losses.

Data Sources:

• Direxion website
• ETF.com
• SEC Filings

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investing in ETFs involves risk, including the potential loss of principal. Leveraged ETFs are particularly risky and are not suitable for all investors. Consult with a financial advisor before making any investment decisions.