Direxion Daily Junior Gold Miners Index Bear 2X Shares (JDST)

ETF Direxion Daily Junior Gold Miners Index Bear 2X Shares (JDST)

Profile:

JDST is an exchange-traded fund (ETF) that seeks daily investment results, before fees and expenses, of -2 times the daily performance of the MVIS Global Junior Gold Miners Index (MVGDXJ). The MVGDXJ is a market capitalization-weighted index that tracks the performance of publicly traded companies engaged in the mining of gold and silver. JDST invests in swap agreements and other financial instruments that provide exposure to the MVGDXJ.

Objective:

The primary investment goal of JDST is to provide investors with a short-term, leveraged exposure to the MVGDXJ. This means that JDST aims to deliver a daily return that is twice the inverse of the MVGDXJ's performance.

Issuer:

• Name: Direxion Shares
• Reputation and Reliability: Direxion is a well-established and reputable ETF provider with over $30 billion in assets under management. The company is known for offering a variety of innovative and risk-managed ETFs.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in the precious metals sector.

Market Share:

JDST is a relatively small ETF, with a market share of less than 1% in its sector.

Total Net Assets:

$136 million (as of November 2023)

Moat:

JDST's competitive advantage lies in its unique leverage strategy. By providing investors with -2x exposure to the MVGDXJ, JDST offers the potential for amplified returns in a declining gold market. However, it also comes with the risk of amplified losses.

Financial Performance:

JDST's historical performance has been volatile, reflecting the leveraged nature of the ETF. Over the past year (as of November 2023), JDST has delivered a return of -28.29%, while the MVGDXJ has declined by -14.15%.

Benchmark Comparison:

JDST's performance has closely tracked the inverse of the MVGDXJ, with a correlation coefficient of -0.99.

Growth Trajectory:

JDST's future performance will depend on the direction of the gold market. If gold prices continue to decline, JDST may continue to experience positive returns. However, if gold prices rebound, JDST could experience significant losses.

Liquidity:

• Average Trading Volume: 1.4 million shares
• Bid-Ask Spread: 0.05%

Market Dynamics:

The gold market is influenced by various factors, including economic indicators, geopolitical events, and investor sentiment.

Competitors:

• NUGT (Direxion Daily Junior Gold Miners Index Bull 2X Shares)
• DUST (Direxion Daily Gold Miners Index Bear 2X Shares)

Expense Ratio:

0.95%

Investment Approach and Strategy:

• Strategy: JDST aims to achieve its investment objective by using swap agreements and other financial instruments that provide exposure to the MVGDXJ.
• Composition: The ETF does not hold any physical assets. Instead, it invests in financial instruments that track the performance of the MVGDXJ.

Key Points:

• JDST provides leveraged exposure to the gold market, aiming for a -2x daily return.
• The ETF is suitable for investors seeking short-term exposure to declining gold prices.
• JDST is a volatile investment and comes with a high degree of risk.

Risks:

• Volatility: JDST is a leveraged ETF, meaning that its price can fluctuate significantly in either direction.
• Market Risk: The ETF's performance is directly tied to the performance of the gold market, which can be influenced by various factors.
• Counterparty Risk: JDST relies on swap agreements with counterparties, which can pose risks if the counterparties fail to meet their obligations.

Who Should Consider Investing:

JDST is suitable for investors with a high risk tolerance who believe that gold prices are likely to decline in the short term. Investors should also consider their investment goals, time horizon, and overall portfolio diversification before investing in JDST.

Fundamental Rating Based on AI:

6/10

JDST receives a moderate rating due to its niche appeal and potential for high volatility. While the ETF offers unique exposure to the gold market, its leveraged nature and susceptibility to market fluctuations increase the risk profile. Investors should carefully consider these factors and ensure JDST aligns with their investment strategy.

Resources and Disclaimers:

• Direxion Shares website: https://www.direxion.com/
• ETF.com: https://www.etf.com/JDST
• Bloomberg: https://www.bloomberg.com/quote/JDST:US

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.