DPST: Euphoria Turns To Despair In A Mere 6 Months
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.
DPST: Regional Banks Set For A Strong Performance In 2025
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.
Regional Banking Boom Shines Spotlight On Direxion's 3X DPST Fund
While apprehensiveness ahead of the third-quarter earnings season permeated the air, the U.S. regional banking sector has proven doubters wrong, at least according to JPMorgan Chase analyst Anthony Elian. With small-to-middle-capitalization banks posting better-than-expected financial results, the underlying ecosystem stands poised for potentially sustained growth.
Positive Bank Earnings Can Push These ETFs Higher
The S&P 500 Financials sector is up about 25% this year and a spate of positive bank earnings can continue to push the sector higher. Additionally, it opens up opportunities in leveraged ETFs.
DPST: Regional Banks Offer Strong Returns Until Crisis Strikes
The Direxion Daily Regional Banks Bull 3X Shares ETF tracks a modified equal weight index of US regional banks, giving it greater diversification and a small-capitalization tilt. DPST's expense ratio stands at 0.95%, in line with other 300% leveraged ETFs, but above non-leveraged ETF alternatives for US financials. DPST's underlying regional banks holdings trade at a significant discount relative to US financials held in the broad IYF ETF.
5 Best Leveraged ETFs of the Third Quarter
We have highlighted a bunch of the best-performing leveraged equity ETFs that have gained 50% or more in the third quarter.
Looming Rate Cuts Could Push These ETFs Higher
Looming interest rate cuts could be a boon for financial sector exchange-traded funds (ETFs), including a pair of leveraged options from Direxion. In particular, the Direxion Daily Financial Bull 3X ETF (FAS) and the Direxion Daily Regional Banks Bull 3X Shares (DPST).
5 Best-Performing Leveraged ETFs of July
The month of July marked a change in investors' sentiment as the leaders of 2024 became the laggards and vice versa due to market rotation.
5 Top-Performing Inverse/Leveraged ETFs of Last Week
Wall Street was moderately upbeat last week.
Interest Rate Cuts Could Affect These 3 ETFs
The fluctuation of interest rates can provide a plethora of trading opportunities. Three areas where the prospect of rate cuts could produce bullish results is in regional banks, small-cap equities, and home builders.
