Latest news with #Direxion
Yahoo
21-05-2025
- Business
- Yahoo
5 Single-Stock ETFs That Doubled in a Month
Single-stock ETFs have been soaring, with many more than doubling in value over the past month amid the historic Wall Street comeback. Unlike traditional ETFs, which typically track a broad index or sector, single-stock ETFs provide exposure to the performance of one specific company by using derivatives. This allows investors to gain exposure to a particular stock without having to buy the stock directly. Single-stock ETFs tap the gambling mindset that exists in markets. There are around 100 single-stock ETFs on the market. We have highlighted five single-stock ETFs that doubled over the past month. (See: all the Single Stock ETFs here). Defiance Daily Target 2X Long HIMS ETF HIMZ – Up 344.5%Defiance Daily Target 2X Long HIMS ETF seeks daily leveraged investment results of two times (200%) the daily percentage change in the share price of Hims & Hers Health Inc. HIMS. It charges 1.31% in annual fees and has amassed $80.1 million in its asset base. Leverage Shares 2X Long HOOD Daily ETF HOOG – Up 131.5%Leverage Shares 2X Long HOOD Daily ETF seeks daily levered investment results of two times the daily percentage change in the price of the common stock of Robinhood HOOD. It charges 75 bps in annual fees and has accumulated $5.9 million in its asset base. GraniteShares 2X Long COIN Daily ETF CONL – Up 109.1%GraniteShares 2x Long COIN Daily ETF seeks two times the daily percentage change of the common stock of Coinbase Global COIN. It has amassed $815.5 million in its asset base while charging 1.15% in annual fees (read: Coinbase to Join S&P 500, Shares Rally: ETFs to Buy).GraniteShares 2x Long VRT Daily ETF VRTL – Up 100.6%GraniteShares 2x Long VRT Daily ETF seeks daily investment results of two times the daily percentage change of the common stock of Vertiv Holdings Co. VRT. It charges 1.5% in annual fees and has amassed $5.7 million in its asset base since late March. Direxion Daily MU Bull 2X Shares MUU – Up 99.4%Direxion Daily MU Bull 2X Shares seeks daily investment results of 200% of the performance of the common shares of Micron Technology Inc. MU. It has AUM of $28.8 million and charges 97 bps in annual fees. These best-performing ETFs offer leveraged plays on tech stocks, which are on the surge once again, given solid corporate earnings and renewed market optimism. The latest earnings underscore the resilience and growth potential of AI-focused companies. While the significant capital expenditures raise questions about short-term profitability, the long-term potential of AI technologies presents substantial opportunities for growth. In particular, Coinbase rallied on optimism over its entry into the S&P 500 Index on May 19. Coinbase's addition to the S&P 500 underscores a broader acceptance of cryptocurrency-related companies in mainstream finance. The move will attract new investors to the company, who would indirectly purchase the company through financial products invested in the S&P 500. Hims & Hers Health has soared more than 140% over the past month, driven by robust earnings results and a strategic partnership with pharmaceutical giant Novo Nordisk NVO to sell Wegovy. This collaboration marks a pivotal moment for Hims & Hers as it expands its offerings in the burgeoning weight-loss treatment market (read: ETFs to Capitalize on the Novo Nordisk-Septerna Deal). While single-stock ETFs offer a focused way to invest in a company, they come with significant risks due to their lack of diversification and exposure to the volatility of a single stock. They are typically more suited for experienced investors who understand and are willing to accept these risks. Here are some of the downsides of these ETFs:High Risk: If the specific company underperforms, investors could lose a substantial amount of of Diversification: One of the key principles of risk management in investing is diversification. Single-stock ETFs go against this principle, as they are invested entirely in one Volatility: A single-stock ETF is subject to the volatility of the individual stock, which can be influenced by company-specific news and Fees: While typically lower than mutual funds, ETFs still come with management fees, which can eat into your investment returns over time, especially in a narrowly focused fund like a single-stock ETF. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Novo Nordisk A/S (NVO) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report Vertiv Holdings Co. (VRT) : Free Stock Analysis Report Hims & Hers Health, Inc. (HIMS) : Free Stock Analysis Report Coinbase Global, Inc. (COIN) : Free Stock Analysis Report Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
20-05-2025
- Business
- Yahoo
5 Most Heavily Traded ETFs of the Past 3 Months
The ETF industry is experiencing explosive growth, accumulating substantial assets this year amid the surge in the stock market. The current year is on track to be one of the biggest years ever for ETF demand. There is enough liquidity in the ETF world, with most funds trading at extremely high volumes. Volume can be determined by the number of shares traded in a particular period. High trading volume indicates high liquidity, which is a key characteristic of ETFs. Here's why volume is relevant:Liquidity: High-volume ETFs are more liquid, meaning they can be bought or sold easily without causing a significant price change. This is important for investors, as it allows them to enter or exit positions without significantly impacting the price. Bid-Ask Spread: High-volume ETFs typically have narrower bid-ask spreads. The bid-ask spread is the difference between the highest price that a buyer is willing to pay for an asset and the lowest price that a seller is willing to accept. A narrower spread means lower transaction costs for Discovery: High trading volumes can lead to better price discovery, which means the market price of the ETF more accurately reflects its underlying value. This is because, with more trades, there's a higher likelihood that the ETF price will reflect the collective knowledge and sentiment of a larger pool of Impact: If an ETF has a low trading volume, large trades can significantly impact its price. This is less of a concern with high-volume Tracking Error: High trading volumes might help in better tracking of the underlying index, leading to a lower tracking error, especially for index ETFs. This is because the arbitrage mechanism works efficiently when the ETF is actively of Interest: High trading volume can also be an indication of high interest in a particular market or sector. For example, if an ETF that tracks a specific industry has a high trading volume, it could indicate that many investors are interested in that ETFs with low trading volumes can sometimes be more volatile than those with high volumes. This is because a small number of trades can have a larger impact on the price of the said, we have highlighted 5 ETFs that have seen higher average volumes over the past three months and are thus the top 5 funds in terms of trading volume, per (see: all the Category ETFs here). Direxion Daily Semiconductor Bull 3x Shares (SOXL) – Average Daily Volume: 199.6 million sharesDirexion Daily Semiconductor Bull 3x Shares targets the semiconductor corner of the technology sector with three times leveraged exposure to the NYSE Semiconductor Index. Direxion Daily Semiconductor Bull 3x Shares has amassed about $12.2 billion in its asset base while charging 72 bps in fees per year (read: 5 Leveraged ETFs Soaring on U.S.-China Trade Truce). Direxion Daily TSLA Bull 2X Shares (TSLL) – Average Daily Volume: 197.3 million sharesWith AUM of $6.8 billion, Direxion Daily TSLA Bull 2X Shares is by far the largest U.S.-listed single-stock ETF on the market. It offers two times (200%) the daily percentage change of the common stock of Tesla, charging 84 bps in annual fees (read: Should You Buy Tesla ETFs Post Q1 Earnings Miss?). ProShares UltraPro QQQ (TQQQ) – Average Daily Volume: 114.2 million sharesProShares UltraPro QQQ seeks to deliver three times the return of the daily performance of the NASDAQ-100 Index, charging investors 0.84% in expense ratio. The index measures the performance of the 100 largest domestic and international non-financial companies listed on Nasdaq based on market capitalization. ProShares UltraPro QQQ is the most popular and liquid ETF in the leveraged space, with AUM of $25 UltraPro Short QQQ (SQQQ) – Average Daily Volume: 106 million sharesProShares UltraPro Short QQQ provides three times (3X or 300%) inverse exposure to the daily performance of the Nasdaq-100 Index, charging 95 bps in annual fees. It has AUM of $3.1 billion. Direxion Daily S&P 500 Bear 3x Shares (SPXS) – Average Daily Volume: 86.3 million sharesDirexion Daily S&P 500 Bear 3x Shares provides three times inverse exposure to the S&P 500 Index and charges 91 bps in annual fees. It has AUM of $408.5 million (read: S&P 500 Makes the Fastest Recovery Since 1982: 5 Best ETFs). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ProShares UltraPro QQQ (TQQQ): ETF Research Reports Direxion Daily S&P 500 Bear 3X Shares (SPXS): ETF Research Reports ProShares UltraPro Short QQQ (SQQQ): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
12-05-2025
- Business
- Bloomberg
Traders Dumped Levered Semiconductor Funds Just Before 24% Surge
ETF investors exited bullish bets on semiconductors last week, just before the sector staged one of its sharpest one-day rebounds in months as Wall Street cheers a US-China trade truce. More than $340 million fled the Direxion Daily Semiconductors Bull 3x Shares (ticker SOXL), which offers triple-leveraged exposure to the industry, during the week ended Friday. That outflow — which marks SOXL's third straight week of money rushing out — came just ahead of a 24% surge for the fund on Monday. The VanEck Semiconductor fund (SMH) also saw roughly $485 million in outflows last week, the most since the end of January, data compiled by Bloomberg show.
Globe and Mail
24-04-2025
- Business
- Globe and Mail
ETF Math: Risk/Reward Tactics with Direxion's Ed Egilinsky
(0:30) - Probability Training is the Antidote to Behavioral Bias (9:45) - Direxion ETFs: You Can Learn A Lot Just By Playing the Game (13:30) - Leverage: Rewards and Risks That Every Investor Must Study (22:50) - Single-Stock ETFs Open a Whole New Playing Field (30:00) - Getting Educated with Direxion on Leveraged And Inverse ETFs (36:55) - Episode Roundup: Podcast@ Welcome back to Mind Over Money. I'm Kevin Cook, your field guide and storyteller for the fascinating arena of behavioral economics. Today my guest on the podcast is Edward Egilinsky, Head of Alternative Investments for the ETF provider Direxion. In over two decades of innovation, they have created a suite of products that active traders find invaluable, like the Direxion Daily Semiconductor Bull 3X Shares SOXL and the Direxion Daily Gold Miners Index Bull 2X Shares NUGT. Their best innovation to date, in my opinion, are the single-stock leveraged and inverse ETFs like the Direxion Daily TSLA Bull 2X Shares TSLL and the Direxion Daily TSLA Bear 1X Shares TSLS which offers a capital-efficient way to deploy a bearish view on Tesla TSLA. They also offer single-stock leverage and inverse exposure on other Mag 7 names like Apple, Amazon, and NVIDIA. But these leveraged and inverse ETF products carry special risks as well as rewards. That's why Ed and his team at Direxion are dedicated to education. Here are a couple of must-engage areas on their website to become more educated yourself before trading these products that can offer a double-edge sword of compounding and decay... Understanding Leveraged & Inverse ETFs Video Series And I think education is especially critical for investors because of the one or two-click trading available on most brokerage apps. But now there's a new obstacle to our learning. Allow me to explain. Mathematical Literacy in the Age of ChatGPT With the advent of large language models, or LLMs, there's a legitimate concern that people will stop doing their own "deep research." From high school and college kids fudging on their papers... to traders and investors getting their financial education from social media. In fact, in the conversations I have on X these days, I would say there is an epidemic of those getting their "minor in macro" from YouTube. But you don't need a degree in economics to become a good investor or trader. What you do need is math skills. I've said for decades that probability training is the antidote to behavioral biases that typically make our money disappear. So imagine me at 29 years old, walking into the trading pits of the Chicago Mercantile Exchange still "allergic to algebra" like I was in high school and college. But I was captivated by the raucous action on the trading floors where the average Joe and Jane from Chicago could play 3D chess with global markets in Japanese yen, pork bellies, and T-bill futures. And because I wanted to stick around -- even though I was making only 6 bucks an hour as a clerk -- I hit the books. Specifically, the sacred texts of trading, Jack Schwager's Market Wizards series. Market Wizards: Gandalf at Your Side The one strength I brought with me into the pits was my love of reading. So I dove into the Market Wizards, which are all almost entirely based on tape-recorded interviews that Schwager did with successful commodity, futures, and currency traders of the 1970s, 1980's, and 1990s. The interviews read like fireside war stories. There's Richard Dennis who started in soybeans and went on to run a fund that did a big chunk of the S&P futures volume. He is probably most famous for training the Turtles. And Paul Tudor Jones, who started trading cotton for his family on the New York Merc and is still doing global macro and appearing on CNBC. Then we have the dynamic duo of George Soros and Stanley Druckenmiller who infamously broke the Bank of England in 1992. There are a dozen more worth mentioning, but I've only got a few minutes here. My main point is that after reading the first two books, I identified several common themes that I called The 6 Keys to the Kingdom: >Psychology >Risk Management >Systems >Consistency >Discipline >Probability There was my Achilles heel with the last one: math. So what did I do? I found more books. Not only was I reading about the complex connections between CME currency and interest rate futures and the global FX and bond markets, I was trying to understand the math of why soybeans, British pounds, or live cattle traded at a premium or a discount in the future. It wasn't easy for a kid who got "queasy from equations" to grasp concepts like the "cost of carry." Before Vegas, the Dice Were Loaded With Ignorance More importantly, I had to learn the most basic math of probability. And I did that by reading the 375-year old story of a Renaissance gambler, the Chevalier de Mere, who knew the polymath Blaise Pascal and brought him a conundrum. Old Antoine Gombaud (aka the Chevalier) offered wagers to daring souls with dice. And he couldn't figure out why one bet -- rolling at least ONE SIX in 4 throws of a single die -- was less likely than the second bet -- rolling at least one DOUBLE SIX in 24 throws of a pair of dice. By his calculations, they were equal. Pascal threw himself into the challenge by engaging his mathematician friend Pierre de Fermat. And in a series of letters they exchanged in the 1650s, they solved the mystery and created the foundations of Monte Carlo and Wall Street. This effort of mine, this work to know how probability worked, inspired me to learn basic statistics. And these were foundational for an understanding of the Black-Scholes options pricing model and volatility dynamics. From Math Flunky to Science Junkie And that is how I built a career for myself in the late 1990s and early 2000s. It was hard and confusing, with many accidental twists and fortuitous turns, but if I could go back, I wouldn't change a thing. It also ignited my passion for science like evolution, astrophysics, and neuroscience. I'd always read books about these favorite topics, but now I could begin to understand the data measurements and statistics that were crucial tools for the scientists doing the work and trying to explain their findings to us. I should add that part of my good fortune wasn't just found in books. I was also in the right place and time for two other reasons: First, I was a clerk in a commodity options pit where I got to watch math geeks with pricing sheets work their magic making two-sided markets to paper (the incoming orders). They were primarily doing delta-neutral volatility arbitrage and I was fascinated to watch and learn in the pit and then try to simulate it on my own later. Second, since Chicago was THE birthplace of options trading for stocks, commodities, and financial futures, we had the best teachers around. One in particular was Sheldon Natenberg, a math lover turned options trader who wrote the quintessential handbook Options Volatility & Pricing. He also taught classes at the Merc and I was lucky enough to take several. For me it was total immersion with stories, experiences, and simulation -- just like when my Dad taught me to fly an airplane at 15 years old. In fact, I give him credit for teaching me how to think in terms of planning and contingency long before I applied those skills to markets. AI is a Message from the Future: Step Away from the Xbox And that's why my personal mission for the rest of my days is to inspire as many kids as possible to find their passion for science and math. The world is changing very fast, and we can't be sure what jobs will still be here a decade from now or what new industries will be created. But having basic agility with science and math concepts will always be crucial to navigate these shifting landscapes. Since the US still graduates 75% of high schoolers below proficiency in math, I know there are lots of kids out there like I was. Many just need a different way to learn the material. Imagine all the kids who might actually love science and math if only their internal spark of curiosity were ignited with alternatives to text books full of equations -- like VR and AR driven by AI. I actually pitched this idea to the National Science Foundation (NSF) in 2017. Some have said I was channeling ChatGPT before any of us knew what an LLM was. In a sense, we are all like the Turtles of Richard Dennis when we first start out -- able to learn anything with the right instruction. I ask almost every parent and teen I meet if they play video games. Then I ask them to consider how much smarter they would become if they put down the video controller for 1 or 2 hours a week and learn how an NVIDIA GPU actually works to create those cool graphics. Here is one of my introductory articles about making science and math come alive for teens... Curiosity Solves Everything: How the Wright Brothers Changed History And you can find my 2017 proposal to the NSF for a youth STEM Learning Design Engine using AI, VR, and AR at the pinned post on my X feed @KevinBCook. Okay enough of my sermon on math, and learning, and trading. My guest today is someone who probably knows more than I do about all three. And he's definitely met more real-life Market Wizards than I have. Go listen to Ed explain the ins and outs of trading leveraged and inverse ETFs. Two More for the Road And here are two more good education resources for learning about Direxion tools and tactics for managing your risk/reward... Leveraged and Inverse ETF Education Center Trading the Ups and Downs of NVDA Kevin Cook is a Senior Stock Strategist for Zacks Investment Research where he runs the TAZR Trader portfolio and makes studying NVIDIA AI a full-time job. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tesla, Inc. (TSLA): Free Stock Analysis Report
Yahoo
09-04-2025
- Business
- Yahoo
Here's 1 Nasdaq ETF to Consider Even as the Index Enters Into a Bear Market
Well, it's official: The Nasdaq Composite has entered bear territory. A bear market occurs when a major index drops over 20% from recent highs, and that's precisely what has happened with the Nasdaq Composite, which is down around 24% from its Dec. 16 high. The index was already having a rough 2025, but it was sent plunging after President Donald Trump announced his new tariff plan on April 2. The new tariffs, which affect imports from around 180 countries, will raise costs on lots of goods, including key products from countries that top companies in the tech-heavy Nasdaq Composite rely on. Although the index is in a bear market, that doesn't mean investors should avoid it. There are still ways to have it set up long-term investors nicely. One of them is an exchange-traded fund (ETF): the Direxion Nasdaq-100 Equal Weighted Index ETF (NASDAQ: QQQE). This ETF doesn't include every stock in the Nasdaq Composite. However, it does work off the Nasdaq-100, a subset that contains the 100 largest nonfinancial companies listed on the exchange. The Direxion ETF stands out because it's equal-weighted instead of market cap-weighted like many other Nasdaq ETFs. This means investments are spread virtually equally among all companies in the Nasdaq-100 instead of larger companies receiving more of the investment and having a larger influence on the movement of ETFs. Megacap tech stocks -- and the "Magnificent Seven" in particular -- make up the vast majority of the standard Nasdaq-100. In fact, the seven stocks (Apple, Nvidia, Microsoft, Amazon, Meta Platforms, Alphabet, and Tesla) account for over 45% of the index. As they go, so goes the index, for better or worse. With a handful of tech stocks making up a large chunk of the Nasdaq-100, it's no surprise that the tech sector is heavily represented in the index. Tech is still the largest sector in the equal-weight ETF, but it's much less than with the standard index. Below are the sectors and how much they account for in each: Sector Percentage of Equal-Weight Nasdaq-100 Percentage of Standard Nasdaq-100 Information technology 40.65% 51.29% Communication services 9.98% 15.11% Consumer discretionary 12.01% 14.73% Consumer staples 7.09% 5.48% healthcare 10.15% 4.98% Industrials 10.96% 4.61% Materials 1.00% 1.27% Utilities 4.05% 1.24% Energy 2.10% 0.56% Financial 0.99% 0.54% Real estate 1.01% 0.19% Source: Direxion. Percentages as of Dec. 31, 2024. The tech sector has been the most rewarding over the past couple of decades, but you never want to lose sight of the importance of diversification. Many other indexes, like the S&P 500, are already tech-heavy at the top, so investing in the standard Nasdaq-100 could make your portfolio a little too tech-leaning. Tech stocks tend to do well when the economy is expanding. However, they can be a liability when the economy is in a downturn and recessions (or recession fears) lead investors to favor dividend and value stocks. This ETF gives you a bit of both. You still get exposure to big-name tech stocks and benefit from growth periods, but you also avoid overconcentration, and you cushion the potential blow of a tech industry stumble. This ETF hit the market in March 2012 and has produced good returns in the 13 years since. Averaging 11% annual returns over a 13-year period (outperforming the S&P 500 in that span) is impressive for a diversified ETF. By no means does this mean the ETF will continue at this pace, but it does show how being equal-weight focused doesn't take away from its growth potential. I wouldn't make the Direxion Nasdaq-100 Equal Weighted Index ETF the bulk of my portfolio, but it can be a good supplemental piece to help reduce concentration risk and give you exposure to the broader Nasdaq-100 index. Before you buy stock in Direxion Shares ETF Trust - Direxion Nasdaq-100 Equal Weighted Index Shares, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Direxion Shares ETF Trust - Direxion Nasdaq-100 Equal Weighted Index Shares wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $469,399!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $590,231!* Now, it's worth noting Stock Advisor's total average return is 731% — a market-crushing outperformance compared to 146% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 5, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Stefon Walters has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Here's 1 Nasdaq ETF to Consider Even as the Index Enters Into a Bear Market was originally published by The Motley Fool Sign in to access your portfolio
