Direxion Daily S&P 500® Bear 3X Shares ETF offers 3x daily inverse exposure to the S&P 500, making it suitable for short-term bearish trades amid rising geopolitical risks and volatility. Due to daily resets and compounding effects, SPXS is not appropriate for long-term holding; it's best used for disciplined, tactical trading only. Given current market uncertainty but long-term growth trends, I rate SPXS as a HOLD—useful for active traders, but not for buy-and-hold investors.
Trade wars continue to fuel sell-offs in U.S. equities, pushing the S&P 500 down further. The optimism heading into 2025 is giving way to market uncertainty as the post-election rally in November 2024 has lost its momentum.
The Direxion Daily S&P 500 Bear 3X Shares ETF seeks to deliver 300% (3x) the inverse return of the S&P 500 index. The ETF has surged in value as the S&P 500 retreats from extremely overvalued levels. I outline reasons for reducing hedges such as the SPXS, as well as why they may still make sense in the current environment.
![]() SPXS 6 months ago Paid | Quarterly | $0.05 Per Share |
![]() SPXS 9 months ago Paid | Quarterly | $0.08 Per Share |
![]() SPXS 25 Jun 2024 Paid | Quarterly | $0.12 Per Share |
![]() SPXS 19 Mar 2024 Paid | Quarterly | $0.14 Per Share |
![]() SPXS 21 Dec 2023 Paid | Quarterly | $0.1 Per Share |
![]() SPXS 6 months ago Paid | Quarterly | $0.05 Per Share |
![]() SPXS 9 months ago Paid | Quarterly | $0.08 Per Share |
![]() SPXS 25 Jun 2024 Paid | Quarterly | $0.12 Per Share |
![]() SPXS 19 Mar 2024 Paid | Quarterly | $0.14 Per Share |
![]() SPXS 21 Dec 2023 Paid | Quarterly | $0.1 Per Share |
ARCA Exchange | US Country |
The discussed fund operates within the financial sector, focusing on leveraging investment strategies that seek to inversely replicate, by 3 times (3X), the daily performance of a specified market index. This market index is notably characterized by its float-adjusted and market capitalization-weighted approach. The fund primarily invests in a variety of financial instruments such as swap agreements, futures contracts, and maintains the capability to establish short positions to achieve its investment objective. A notable aspect of this fund is its decision to invest at least 80% of its net assets (including amounts borrowed for investment purposes) in instruments that provide these inverse exposures. It is structured as a non-diverse entity, choosing to concentrate on a narrow range of investments rather than spreading its risk across a wider array of assets.
The fund offers a specialized financial product geared toward sophisticated investors who seek exposure to inverse market performance. Below is a delineation of its primary services: