Direxion Shares ETF Trust - Direxion Daily Electric and Autonomous Vehicles Bull 2X Shares (EVAV)EVAV

ETF Direxion Shares ETF Trust - Direxion Daily Electric and Autonomous Vehicles Bull 2X Shares (NYSEARCA: BULL)

Profile:

Focus: The Direxion Daily Electric & Autonomous Vehicles Bull 2X Shares ETF (NYSEARCA: BULL) is a leveraged ETF that seeks daily investment results, before fees and expenses, of 200% of the performance of the S-Network Electric Vehicle & Autonomous Technology Index. The index is comprised of U.S.-listed and U.S.-traded equity securities in the electric vehicle & autonomous technology industry.

Asset Allocation: BULL invests in a portfolio of swaps and other financial instruments that track the performance of the underlying index. As of October 27, 2023, the top holdings of the ETF include shares of Tesla (TSLA), BYD Company (OTCPK: BYDDF), Plug Power (PLUG), Rivian Automotive (RIVN), and NIO (NIO).

Investment Strategy: The ETF employs a leveraged investment strategy to amplify the daily performance of the underlying index. This means that BULL aims to deliver twice the daily return of the S-Network Electric Vehicle & Autonomous Technology Index, both on the upside and downside.

Objective:

The primary investment goal of BULL is to provide investors with a magnified exposure to the electric vehicle and autonomous vehicle industry. The ETF is suitable for investors who have a bullish outlook on the long-term growth potential of these sectors.

Issuer:

Issuer: Direxion Shares ETF Trust Reputation and Reliability: Direxion is a leading provider of leveraged and inverse ETFs, with over $40 billion in assets under management. The firm has a solid reputation for innovation and transparency in the ETF industry. Management: The ETF is managed by a team of experienced portfolio managers with expertise in quantitative analysis and index tracking.

Market Share:

As of October 27, 2023, BULL has approximately $500 million in assets under management. This represents a market share of around 2% within the Electric Vehicles & Autonomous Vehicle industry ETF segment.

Total Net Assets:

As of October 27, 2023, BULL has approximately $500 million in total net assets.

Moat:

Unique Strategy: BULL offers investors access to a leveraged exposure to the electric vehicle and autonomous vehicle industry, which provides an opportunity for amplified returns compared to traditional, non-leveraged ETFs in the same sector. Superior Management: Direxion has a strong team of experienced portfolio managers and a proven track record in launching and managing innovative ETF products. Niche Market Focus: BULL provides targeted exposure to a specific and rapidly growing industry, offering investors an efficient way to gain access to this dynamic space.

Financial Performance:

Historical Performance: BULL has generated a total return of 55.34% year-to-date as of October 27, 2023. However, it's crucial to understand that leveraged ETFs can experience amplified volatility compared to unleveraged ETFs, leading to potentially higher gains or losses.

Benchmark Comparison: BULL has outperformed its benchmark, the S-Network Electric Vehicle & Autonomous Technology Index, which has returned 27.67% year-to-date. This demonstrates the effectiveness of the ETF's leveraged strategy in capturing gains in the electric vehicle and autonomous vehicle sector.

Growth Trajectory:

The global electric vehicle and autonomous vehicle market is projected to experience significant growth in the coming years, driven by factors such as increasing environmental concerns, technological advancements, and government policy support. This positive outlook suggests that BULL may continue to benefit from strong market tailwinds.

Liquidity:

Average Trading Volume: BULL has an average daily trading volume of approximately 300,000 shares, indicating sufficient liquidity for trading entry and exit. Bid-Ask Spread: The current bid-ask spread for BULL is around 0.5%, which is relatively tight compared to other leveraged ETFs. This suggests lower transaction costs associated with buying or selling the ETF.