Direxion Daily Financial Bull 3X: Not For Building Long-Term Investment Portfolios
Leveraged ETFs, like the Direxion Daily Financial Bull 3X ETF, are designed for day trading, not long-term investing, due to their daily reset mechanism. Holding leveraged ETFs beyond a single day can result in losses, even if the underlying index remains flat, due to the compounding effects of leverage. Leveraged ETFs are suitable for traders looking to hedge short-term positions or speculate on market movements, not for building long-term investment portfolios.
4 Best Leveraged ETFs of Last Week
Wall Street was moderately upbeat last week.
5 Best Leveraged ETFs of 2024
We highlight a bunch of the best-performing leveraged equity ETFs of 2024.
Top 3 ETFs for Bullish Investors Post-Election
In the period following the U.S. presidential election of 2024, financial markets are preparing for a second Trump administration and, with it, the potential for a host of new financial policies, regulations, and other decisions likely to impact the economy. It remains early to predict the exact nature of these changes, but the market has generally moved upward since the date of the election, with the S&P 500 climbing about 3.2% since that day.
FAS: A Leveraged Bet On Large Capitalization US Financials
The Direxion Daily Financial Bull 3X Shares ETF tracks a concentrated index of US financials exhibiting a large capitalization tilt. FAS's top ten holdings trade at a forward P/E of 20.96 and have an upside potential of 5.64% over the next twelve months. I expect the underlying index to deliver a mid-single-digit return going forward, potentially resulting in a low double-digit gain for FAS investors after 300% leverage.
Rotation To Financial Stocks Missing This Element So Far
Rotations and reversals provide great opportunities. But you need follow-through strength in order to make money.
