Direxion Daily Regional Banks Bull 3X Shares ETF offers 3x daily exposure to regional banks, but is only suitable for short-term trading due to compounding and value decay risks. Macroeconomic factors like potential Fed rate cuts in 2025 could benefit regional banks and DPST, but industry headwinds and credit risks persist. Leveraged ETFs like DPST carry amplified downside risk, require careful risk management, and are not appropriate for long-term holding.
DPST seeks to deliver 300% (3x) the return of the S&P Regional Banks Select Industry Index. DPST surged in value on the back of deregulation and tax cut expectations, but recent U.S. economic uncertainty has sapped investor enthusiasm. Regional bank forward P/E ratios are the lowest in the last six months, offering a wide margin of safety relative to U.S. financials.
The Direxion Daily Regional Banks Bull 3X Shares ETF seeks to deliver 300% (3x) the return of an index composed of US regional banks. US regional banks trade at attractive valuations and will benefit from robust economic growth projected for the US economy in 2025. Wall Street analysts expect DPST's largest holdings to deliver double-digit gains over the next 12 months.
![]() DPST In 2 months Estimated | Quarterly | $0.61 Per Share |
![]() DPST 2 weeks ago Paid | Quarterly | $0.61 Per Share |
![]() DPST 3 months ago Paid | Quarterly | $0.48 Per Share |
![]() DPST 6 months ago Paid | Quarterly | $0.21 Per Share |
![]() DPST 9 months ago Paid | Quarterly | $0.49 Per Share |
![]() DPST 25 Jun 2024 Paid | Quarterly | $0.44 Per Share |
![]() DPST In 2 months Estimated | Quarterly | $0.61 Per Share |
![]() DPST 2 weeks ago Paid | Quarterly | $0.61 Per Share |
![]() DPST 3 months ago Paid | Quarterly | $0.48 Per Share |
![]() DPST 6 months ago Paid | Quarterly | $0.21 Per Share |
![]() DPST 9 months ago Paid | Quarterly | $0.49 Per Share |
![]() DPST 25 Jun 2024 Paid | Quarterly | $0.44 Per Share |
ARCA Exchange | US Country |
The described company is a financial entity primarily focused on investing in a variety of financial instruments to provide its investors with 3X daily leveraged exposure to a specific index. This index is a modified equal-weighted index targeting the performance of stocks within the S&P Total Market Index that fall under the GICS regional banks sub-industry. By allocating at least 80% of its net assets into swap agreements, securities of the index, and ETFs that mirror the index, the company aims to achieve its investment objective. It is important to note that the fund maintains a non-diversified status, implying a more concentrated investment approach rather than spreading risks across a wide array of assets.
These are derivative contracts through which two parties exchange the cash flows or liabilities from two different financial instruments. In the context of this fund, swap agreements are utilized to achieve the desired leveraged exposure to the index, playing a critical role in meeting the fund's investment objective.
Investing directly in securities that are part of the target index allows the fund to gain direct exposure to the underlying assets of the regional banking sector. This method is one of the fundamental strategies employed by the fund to ensure that it closely tracks the performance of the designated index.
Exchange-Traded Funds (ETFs) that mirror the performance of the index are another avenue through which the fund invests. These ETFs provide a more liquid and efficient means of gaining the desired exposure to the index, contributing to the fund's ability to offer 3X daily leveraged returns to its investors.