Direxion Daily Cnsmr Discret Bull 3XShrs (WANT)

Overview

The Direxion Daily Consumer Discretionary Bull 3X Shares (WANT) seeks daily investment results, before fees and expenses, of 300% of the daily performance of the Consumer Discretionary Select Sector Index. It is a leveraged ETF designed for short-term trading and aims to provide triple the daily return of its underlying index. The ETF invests primarily in financial instruments and derivatives that provide exposure to the consumer discretionary sector.

Reputation and Reliability

Direxion is a well-known issuer of leveraged and inverse ETFs. They are generally considered reliable in delivering the stated daily leveraged exposure, though the complexities of leveraged products require investor understanding.

Management Expertise

Direxion has a dedicated team experienced in managing leveraged and inverse ETFs, using sophisticated strategies and risk management techniques to achieve the desired daily returns.

Goal

The ETF aims to deliver three times the daily performance of the Consumer Discretionary Select Sector Index.

Investment Approach and Strategy

Strategy: The ETF employs a leveraged strategy, using financial instruments such as swap agreements, futures contracts, and options on securities, to achieve its investment objective. It does not seek to provide 3x the return of the index for periods longer than a single day.

Composition The ETF primarily holds derivatives that provide exposure to companies within the Consumer Discretionary Select Sector Index. This includes stocks of companies from industries such as retail, media, hotels, restaurants, and leisure.

Market Share: Data unavailable, varies greatly day to day.

Total Net Assets (AUM): 42440000

Key Competitors

• ProShares Ultra Consumer Goods (UGE)
• Consumer Discretionary Select Sector SPDR Fund (XLY)

Competitive Landscape

The leveraged ETF market is competitive. WANT faces competition from other leveraged and non-leveraged consumer discretionary ETFs. Its advantage lies in offering 3x daily leverage, appealing to aggressive traders. However, the leveraged nature makes it riskier and unsuitable for long-term investors compared to unleveraged ETFs like XLY. The market share for leveraged ETFs compared to unleveraged ETFs is generally small.

Historical Performance: Historical performance data is readily available from financial data providers, but highly volatile due to the leveraged nature. It's crucial to remember that past performance isn't indicative of future results.

Benchmark Comparison: The ETF's performance should be compared to 3x the daily performance of the Consumer Discretionary Select Sector Index. However, due to compounding, returns will diverge over longer periods.

Expense Ratio: 0.95

Average Trading Volume

The average trading volume fluctuates but is usually sufficient for traders, impacting ease of entry and exit.

Bid-Ask Spread

The bid-ask spread varies depending on market conditions but impacts overall trading costs.

Market Environment Factors

Economic indicators like consumer confidence, retail sales, and employment rates significantly influence the consumer discretionary sector and WANT's performance. Market volatility and interest rate changes can also impact the ETF.

Growth Trajectory

The ETF's growth is tied to investor interest in leveraged consumer discretionary exposure. Changes in market sentiment and economic outlook can lead to fluctuations in assets under management and trading volume.

Competitive Edge

WANT's competitive edge lies in its 3x daily leverage, attracting traders seeking amplified exposure to the consumer discretionary sector. This leverage allows for potentially higher returns in the short term, albeit with significantly increased risk. Direxion's expertise in managing leveraged ETFs further strengthens its position. However, this leveraged structure is best used for short-term speculation, and is not a long-term buy and hold strategy.

Volatility

The ETF is highly volatile due to its leveraged nature. Expect significant price swings and potential for substantial losses.

Market Risk

The ETF is subject to market risk associated with the consumer discretionary sector. Economic downturns, changes in consumer preferences, and industry-specific events can negatively impact the ETF's performance.

Ideal Investor Profile

The ideal investor is an experienced trader with a high-risk tolerance, a short-term investment horizon, and a thorough understanding of leveraged ETFs and their associated risks. This is not suitable for long-term investors.

Market Risk

The ETF is best suited for active traders seeking short-term, tactical exposure to the consumer discretionary sector. It is not suitable for long-term investors or passive index followers.

The Direxion Daily Consumer Discretionary Bull 3X Shares (WANT) is a leveraged ETF designed to deliver three times the daily performance of the Consumer Discretionary Select Sector Index, making it a tool for short-term traders seeking amplified gains. Its leveraged nature introduces significant volatility and risk, rendering it unsuitable for long-term investors. The ETF's performance is closely tied to the consumer discretionary sector and overall market sentiment, requiring vigilant monitoring of economic indicators and market conditions. Investors should fully understand the complexities and risks associated with leveraged ETFs before considering an investment in WANT.

• UYG
• XLY
• VCR
• RCD

Data Sources:

• Direxion
• Yahoo Finance
• ETF.com

Disclaimers:

The information provided is for informational purposes only and should not be considered financial advice. Leveraged ETFs are complex instruments and involve a high degree of risk. Investors should consult with a qualified financial advisor before making any investment decisions.