Direxion Daily Gold Miners Shares ETFs: Bull or Bear Leveraged Funds

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Is investing in Direxion Daily Gold Miners Shares ETFs good for your brokerage account? Will you invest in bull or bear leveraged exchange traded funds (ETFs)?

Investment Idea

Trading in leveraged ETFs is popular among traders. With increasing exposure in certain sectors or markets, traders can enhance their returns using these exchange traded funds (ETFs). These leveraged ETF may attempt to double or triple the return of an index on a daily basis. One of the hot sectors is gold miners sectors. In recent investment ad, Direxion introduces 2 leveraged ETFs: Direxion Daily Gold Miners Bull 3x Shares and Direxion Daily Gold Miners Bear 3x Shares.

Should you as investors invest in these ETF products? Whether they are for your long term account such as 401(k) account, retirement account, or brokerage account, you need to understand your investment through research and study. I will provide the funds review below.

The investment ad includes:
Direxion Daily Gold Miners Shares ETFs3x exposure to Gold Miners in either direction. 
NUGT
Daily Gold Miners Bull 3x Shares
 
DUST
Daily Gold Miners Bear 3x Shares
 
For traders, Direxion matters. 
Get started today. Call 866.476.7523 or go to direxionfunds.com 
direxionshares – Think direction. Trade.
Investor should consider the investment objectives, risks, charges, and expense of Direxion Shares carefully before investing. The prospectus and summary prospectus contains this and other information about Direxion Shares. To obtain a prospectus please visit www.direxionfunds.com/regulatory-documents. The prospectus and summary prospectus should be read carefully before investing.

Leveraged Funds Review

The Direxion Daily Gold Miners Bull 3x Shares Fund (NUGT) seeks a return that is 300% the return of its benchmark index for a single day. It should not be expected to provide three times the return of the benchmark’s cumulative return for periods greater than a day. The benchmark is NYSE Arca Gold Miners Index. The CUSIP is 25459Y389. The fund has $629.78 million of total net assets.

This exchange traded fund has an annual expense ratio of 0.95%. It is introduced to public in December 2010. The CUSIP of DUST is 25459Y235. It is currently traded at discount -0.19% from its NAV. The total net assets are $154.52 million.

This NUGT fund is on the 100th rank among its peers in Trading-Leveraged Equity category. It has YTD return of -92.11%. It also has returned -43.94% in 2012 and -47.85% in 2011. Since the inception, NUGT fund has returned -72.57%.

While Direxion Daily Gold Miners Bear 3x Shares Fund is the opposite of the Direxion Daily Gold Miners Bull 3x Shares Fund. This leveraged ETF seeks daily investment results of 300% of the inverse (or opposite) of the performance of the NYSE Arca Gold Miners Index. This DUST ETF fund has returned 94.99% for year to date. Since inception, it has return 17.90%.

The top country weightings of the target index (NYSE Arca Gold Miners) are Canada (62.68%) and United States (13.60%).

Last Words

  • Leveraged funds are not for long term investment. It is suitable only for short term trading.
  • If you have long term view about gold miners, it is better to invest in individual companies or non-leverage funds.

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