Direxion Daily S&P 500® High Beta Bear 3X Shares (HIBS)

Overview

The Direxion Daily S&P 500u00ae High Beta Bear 3X Shares (HIBS) seeks daily investment results, before fees and expenses, of 300% of the inverse (or opposite) of the daily performance of the S&P 500u00ae High Beta Index. It's a leveraged bear ETF designed for short-term trading and is not suitable for buy-and-hold investors.

Reputation and Reliability

Direxion is a well-known issuer of leveraged and inverse ETFs. They are generally considered reliable, but their products are complex and require careful consideration.

Management Expertise

Direxion's management team has experience in creating and managing leveraged and inverse ETFs. Their expertise is focused on delivering the stated daily objectives.

Goal

To seek daily investment results, before fees and expenses, of 300% of the inverse (or opposite) of the daily performance of the S&P 500u00ae High Beta Index.

Investment Approach and Strategy

Strategy: The ETF employs a leveraged strategy to achieve 3x inverse exposure to the daily performance of the S&P 500 High Beta Index.

Composition The ETF primarily uses financial instruments such as swap agreements, futures contracts, and other derivatives to achieve its leveraged inverse exposure. It does not directly hold stocks.

Market Share: HIBS holds a relatively small market share within the leveraged ETF space.

Total Net Assets (AUM): 16890000

Key Competitors

• SH (ProShares Short S&P500)
• SDS (ProShares UltraShort S&P500)
• SPXU (ProShares UltraPro Short S&P500)

Competitive Landscape

The leveraged ETF market is competitive. HIBS offers a 3x leveraged inverse exposure, while competitors may offer different leverage ratios or tracking methodologies. HIBS is more volatile than its competitors, so investors need to consider it.

Historical Performance: Due to the leveraged and inverse nature, HIBS's historical performance is highly volatile and path-dependent. Long-term performance is generally negative due to the effects of compounding and the volatility drag. Historical data is available from ETF providers.

Benchmark Comparison: The ETF aims to deliver 3x the inverse daily performance of the S&P 500 High Beta Index. Deviations may occur due to fees, expenses, and the complexities of the leveraged strategy.

Expense Ratio: 1.21

Average Trading Volume

HIBS's average trading volume is moderate, which can impact the ease of entering and exiting positions.

Bid-Ask Spread

The bid-ask spread for HIBS can be relatively wide, especially during periods of high volatility, increasing trading costs.

Market Environment Factors

HIBS's performance is significantly affected by the S&P 500 High Beta Index's behavior, overall market sentiment, and economic conditions. Increased market volatility typically benefits inverse ETFs.

Growth Trajectory

The growth trajectory of HIBS depends on investor demand for leveraged inverse exposure to the S&P 500. It is usually used for hedging or short-term speculation rather than long-term holding.

Competitive Edge

HIBS's competitive advantage lies in its 3x leveraged inverse exposure to the S&P 500 High Beta Index, appealing to traders seeking amplified short-term gains in a declining market. It provides a tool for hedging portfolios or speculating on market downturns. However, it is important to understand the risks associated with leveraged ETFs. The ETF is not meant for long-term investment and may suffer from significant value erosion.

Volatility

HIBS exhibits extremely high volatility due to its leveraged nature. Investors should expect significant price swings.

Market Risk

HIBS is subject to significant market risk because the returns on this ETF may not match the returns on the underlying assets that the ETF is designed to track, due to leverage and compounding.

Ideal Investor Profile

The ideal investor is a sophisticated trader with a high-risk tolerance, a thorough understanding of leveraged ETFs, and a short-term investment horizon.

Market Risk

HIBS is suitable for active traders seeking short-term inverse exposure to the S&P 500 High Beta Index. It is not suitable for long-term investors.

Direxion Daily S&P 500u00ae High Beta Bear 3X Shares (HIBS) is a leveraged inverse ETF designed for short-term trading and not suitable for long-term holding. It seeks to deliver 3x the inverse daily performance of the S&P 500 High Beta Index and exhibits high volatility. Itu2019s designed for sophisticated traders with a strong grasp of leveraged products. HIBS's performance is heavily influenced by market dynamics, requiring close monitoring of market trends.

Data Sources:

• Direxion
• SEC filings
• Yahoo Finance
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Leveraged ETFs are complex instruments and carry a high degree of risk.