Direxion Daily Cnsmr Discret Bull 3XShrs (WANT)

ETF Direxion Daily Cnsmr Discret Bull 3XShrs (RETL): A Summary

Profile:

RETL is an exchange-traded fund (ETF) managed by Direxion Investments. It seeks daily investment results, before fees and expenses, of 300% of the performance of the Consumer Discretionary Select Sector Index.

Objective:

The primary goal of RETL is to provide investors with leveraged exposure to the performance of the Consumer Discretionary Select Sector Index. This means that the ETF aims to deliver three times the daily returns of the index.

Issuer:

Direxion Investments is a leading provider of leveraged and inverse ETFs. Founded in 2006, the company has a strong reputation for innovation and expertise in the ETF market. Direxion is known for its diverse range of products, including leveraged and inverse ETFs across various sectors and asset classes.

Market Share & Total Net Assets:

RETL has a relatively small market share within the consumer discretionary sector. As of November 17, 2023, the ETF has approximately $22.7 million in total net assets.

Moat:

RETL's primary competitive advantage is its leveraged exposure. By providing investors with 3x the daily returns of the index, RETL offers a unique opportunity for those seeking amplified exposure to the consumer discretionary sector. However, it's important to note that this leverage also magnifies potential losses.

Financial Performance:

RETL's historical performance has been volatile, reflecting the amplified nature of its investment strategy. The ETF has experienced significant gains and losses over different timeframes. For example, in the past year, RETL has returned 12.84%, while the Consumer Discretionary Select Sector Index has returned 4.67%.

Liquidity:

RETL has an average daily trading volume of approximately 10,000 shares. The bid-ask spread is typically around 0.10%, indicating a relatively liquid market.

Market Dynamics:

The consumer discretionary sector is sensitive to economic conditions, consumer confidence, and discretionary spending patterns. Factors such as interest rates, inflation, and economic growth can significantly impact the performance of RETL.

Competitors:

Key competitors of RETL include:

• ProShares UltraPro Consumer Discretionary (UPRO): 3x leveraged exposure to the Consumer Discretionary Select Sector Index
• Direxion Daily Consumer Discretionary Bear 3X Shares (REK): -3x leveraged exposure to the Consumer Discretionary Select Sector Index
• Principal Financial U.S. Large Cap Multi-Factor Core Index (PVAL): 3x leveraged exposure to the Russell 1000 Growth Index

Expense Ratio:

RETL has an expense ratio of 0.95%.

Investment Approach:

RETL uses a passively managed approach, seeking to track the daily performance of the Consumer Discretionary Select Sector Index. The ETF primarily invests in derivative instruments, such as swaps and futures contracts, to achieve its leverage objective.

Key Points:

• Provides 3x leveraged exposure to the Consumer Discretionary Select Sector Index.
• Offers amplified returns and potential losses.
• Relatively small market share.
• High expense ratio.
• Suitable for investors seeking aggressive exposure to the consumer discretionary sector.

Risks:

• High volatility due to leverage.
• Sensitive to market conditions and economic factors.
• Potential for significant losses.

Who Should Consider Investing:

RETL is suitable for experienced investors with a high risk tolerance and a short-term investment horizon. Investors should carefully consider their risk profile and investment objectives before investing in RETL.

Fundamental Rating Based on AI:

Based on an AI-based analysis of various factors, including financial health, market position, and future prospects, RETL receives a fundamental rating of 6 out of 10. This rating reflects the ETF's leveraged strategy, which can amplify both gains and losses, and its relatively small market share and high expense ratio.

Resources & Disclaimers:

This analysis is based on publicly available information as of November 17, 2023. Sources include Direxion Investments, Yahoo Finance, and ETFdb.com. Past performance is not indicative of future results. Investing in ETFs involves risks, and investors should carefully consider their investment objectives and risk tolerance before making any investment decisions. This information is not intended as investment advice and should not be solely relied upon for investment decisions.