SPXL: A Good Option For Investors Looking To Amplify Gains From The S&P 500 - With Risks
SPXL offers 3x daily leveraged exposure to the S&P 500, best suited for short-term tactical trades around major market catalysts. Key bullish drivers include surging AI investment, positive trade deals, and potential Fed rate cuts, all of which could spark sharp market moves. Leveraged ETFs like SPXL amplify both gains and losses, with volatility and loss recoupment risks making them unsuitable for long-term holding.
This Is Why I Would Buy SPXL
Some skeptics may point to the SPXL ETF as risk-prone because it is triple-leveraged.
If a Cruel Summer Is Ahead, Consider This Inverse ETF
The dog days of summer don't apply to traders. Seeking profits is an all-season affair.
Great Time To Buy SPXL
SPXL, a leveraged ETF, aims for 3x SPY's daily return, with a 0.87% expense ratio offset by a 0.91% dividend. My strategy involves holding SPXL when SPY is above its 200-day moving average, selling when it falls below. Despite recent underperformance, the strategy minimizes drawdowns; SPXL is now a buy signal, indicating lower volatility and higher returns.
SPXL: The Market-Beating Strategy For Positive Risk-Adjusted Returns
Buying SPXL when SPY is above its 200-day moving average produces positive risk-adjusted returns. The strategy beats the market over the long term. For this strategy to work, an investor has to pick an index that has a solid return/risk ratio.
Ease S&P 500 Uncertainty Fears With These ETFs
With a new U.S. president at the helm and a Fed that's getting mixed signals from the economy, uncertainty abounds. Traders can ease those fears with leveraged and inverse exchange-traded funds (ETFs) from Direxion's product suite.
Bullish Bets Come in for S&P 500 Ahead of New Year
The S&P 500 continues to march higher, reaching over 27% year to date. Bullish bets for 2025 are already coming for the index, with the most ambitious target being a price target of 7,100 from ETF provider Oppenheimer.
Split Sentiments May Drive Huge Interest In Direxion's SPXL And SPXS Leveraged ETFs
Up until earlier Wednesday morning, bullish investors had every reason for fueled optimism. Yesterday, big-box retailing giant Walmart Inc WMT delivered strong third-quarter results, posting adjusted earnings per share of 58 cents.
SPXL: Is It Worth The Risk?
The SPXL, a 3x leveraged ETF, has produced alpha despite high volatility or Beta slippage, outperforming the S&P 500 by over 5x since inception. While risky during high volatility periods, SPXL can yield 40%-60% returns through 2026 with moderate volatility and market corrections. The primary risk for SPXL is frequent, severe market drawdowns, which hinder recovery and long-term gains.
SPXL: A Traders Tool
Stock markets show higher volatility and no clear trend, making it a trader's market. SPXL seeks 300% daily performance of S&P 500, but holding long-term will deliver varying results. With S&P 500 upside likely capped ahead of the election, SPXL trades must be closely managed.
S&P Volatility Ahead Opens Door for Short-Term Traders
When volatility hits major market indexes, it can spark a sense of angst. But for short-term traders, market fluctuations open the door for opportunities.
2 ETFs for a Steady S&P Climb and a Potential Correction
A slow but steady summer climb in the S&P 500 has been evident by the low volatility. But the possibility of a potential correction means traders can be prepared with a pair of leveraged ETFs from Direxion.
