In early 2026, the energy sector has reclaimed its title as one of — if not the — most volatile corners when it comes to the equities market. As Direxion CEO Doug Yones would say, heavy volatility makes for “perfect Direxion weather.
Conflict in Iran is spooking global markets, sending oil prices higher. Some geopolitical experts and professional investors are speculating that prolonged conflict there or a traditional boots-on-the-ground military campaign could send crude price soaring to $150 per barrel.
Rising U.S.-Iran tensions and limited OPEC+ supply hikes may lift oil prices, putting leveraged energy ETFs like ERX, GUSH, DIG and OILU in focus.
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The described entity is a fund that primarily focuses on the energy sector, including industries such as oil, gas and consumable fuels, along with energy equipment and services. It is linked to an index provided by S&P Dow Jones Indices, which comprehensively encompasses domestic companies operating within these sectors. This fund is distinctive in its investment strategy, as it commits at least 80% of its net assets to financial instruments like swap agreements, securities of the index, and ETFs that track the index. A notable aspect of this fund is its goal to provide 2X daily leveraged exposure to the index, aligning with the fund’s investment objective. It's important to highlight that this fund operates with a non-diversified investment approach.
The fund offers a specialized set of financial products and services designed to cater to investors interested in the energy sector, with a focus on providing leveraged exposure. The offerings include:
Together, these financial instruments and strategies are utilized to fulfill the fund's objective of providing 2X daily leveraged exposure to the energy sector index, catering to investors seeking to potentially amplify their returns in this specific market segment.