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Direxion Shares ETF Trust - Direxion Daily AAPL Bull 1.5X Shares (AAPU)
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Upturn Advisory Summary
12/05/2024: AAPU (2-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type ETF | Historic Profit 39.98% | Avg. Invested days 42 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance 3.0 | ETF Returns Performance 5.0 |
Profits based on simulation | Last Close 12/05/2024 |
Key Highlights
Volume (30-day avg) 430913 | Beta - | 52 Weeks Range 17.81 - 40.72 | Updated Date 01/22/2025 |
52 Weeks Range 17.81 - 40.72 | Updated Date 01/22/2025 |
AI Summary
ETF Direxion Shares ETF Trust - Direxion Daily AAPL Bull 1.5X Shares (AAPL)
Profile:
The Direxion Daily AAPL Bull 1.5X Shares ETF (AAPL) is an exchange-traded fund (ETF) that seeks daily investment results, before fees and expenses, of 150% of the performance of the S&P 500 Apple Index. This means the ETF aims to deliver 1.5 times the daily performance of Apple's stock price. It falls under the equity sector and focuses on technology stocks, specifically Apple.
Objective:
The primary objective of AAPL is to provide investors with a leveraged exposure to the performance of Apple's stock. This makes it suitable for investors who believe that Apple's stock price will rise in the short term.
Issuer:
Direxion Shares ETF Trust is the issuer of AAPL.
Reputation & Reliability: Direxion has a relatively short history compared to other ETF providers, established in 2006. However, it has garnered a solid reputation for offering innovative and niche ETFs, particularly in the leveraged and inverse space.
Management: The ETF is managed by Rafi Farber, who has extensive experience in the financial industry.
Market Share: AAPL holds a small market share within the technology sector, focusing specifically on leveraged Apple exposure.
Total Net Assets: As of November 10, 2023, AAPL has approximately $111.9 million in total net assets.
Moat:
- Unique Strategy: AAPL offers a focused and unique strategy for investors seeking leveraged exposure to Apple's stock.
- First-mover Advantage: Being one of the first ETFs to offer leveraged exposure to Apple, AAPL enjoys a first-mover advantage in this specific niche.
Financial Performance:
Historical performance data shows that AAPL has generally achieved its objective of delivering 1.5 times the daily performance of Apple's stock. However, due to its leveraged nature, AAPL also experiences higher volatility.
Benchmark Comparison: Compared to the S&P 500 Apple Index, AAPL has generally outperformed on days when Apple's stock price rises. However, during periods of decline, AAPL experiences amplified losses.
Growth Trajectory:
The growth trajectory of AAPL is heavily dependent on Apple's stock price performance. As Apple continues to be a dominant player in the technology sector, AAPL has the potential to experience further growth.
Liquidity:
- Average Trading Volume: AAPL has a moderate average daily trading volume, indicating decent liquidity.
- Bid-Ask Spread: The bid-ask spread is relatively tight, suggesting low transaction costs.
Market Dynamics:
Factors affecting AAPL's market environment include:
- Apple's financial performance: Strong financial results from Apple typically lead to increased investor confidence and a rising stock price.
- Overall market sentiment: Volatility in the broader market can impact AAPL's performance.
- Technological advancements: Disruptive technologies or industry changes could negatively impact Apple's business and stock price.
Competitors:
- ProShares UltraPro QQQ (TQQQ): 3x leveraged exposure to the Nasdaq-100 Index.
- Direxion Daily Technology Bull 3X Shares (TECL): 3x leveraged exposure to the Technology Select Sector Index.
Expense Ratio:
The expense ratio for AAPL is 0.95%.
Investment Approach and Strategy:
- Strategy: AAPL uses derivatives and swaps to achieve its leveraged objective.
- Composition: The ETF primarily holds Apple stock and swap agreements.
Key Points:
- Provides 1.5x daily exposure to Apple's stock performance.
- Suitable for short-term investors with a bullish outlook on Apple.
- Higher volatility compared to traditional ETFs.
- Moderately liquid with tight bid-ask spread.
Risks:
- Volatility: AAPL experiences amplified volatility due to its leveraged nature.
- Market Risk: The ETF's performance is directly tied to Apple's stock price, making it susceptible to market fluctuations in the technology sector.
- Counterparty Risk: The ETF relies on swap agreements with financial institutions, introducing counterparty risk.
Who Should Consider Investing:
- Investors with a strong bullish outlook on Apple's stock price in the short term.
- Investors comfortable with higher volatility.
- Investors seeking a leveraged exposure to Apple's performance.
Fundamental Rating Based on AI:
7/10
AAPL receives a 7 out of 10 based on its AI-driven analysis. The rating considers factors such as financial health, market position, and future prospects.
Justification:
- Strong financial performance from Apple supports the ETF's objective.
- Unique and niche strategy provides investors with access to leveraged Apple exposure.
- Moderate liquidity and tight bid-ask spread enhance accessibility.
- However, high volatility and market risk inherent to leveraged ETFs might deter some investors.
Resources and Disclaimers:
This analysis utilizes data from the following sources:
- Direxion website: https://www.direxion.com/
- ETF.com: https://www.etf.com/
- Yahoo Finance: https://finance.yahoo.com/
This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.
About Direxion Shares ETF Trust - Direxion Daily AAPL Bull 1.5X Shares
Exchange NASDAQ | Headquaters - | ||
IPO Launch date - | CEO - | ||
Sector - | Industry - | Full time employees - | Website |
Full time employees - | Website |
The fund, under normal circumstances, invests at least 80% of its net assets (plus any borrowings for investment purposes) in the securities of AAPL and financial instruments, such as swap agreements and options, that, in combination, provide 2X daily leveraged exposure to AAPL, consistent with the fund"s investment objective. The fund is non-diversified.
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