Latest news with #SPXL
Yahoo
17 hours ago
- Business
- Yahoo
3 Reasons to Buy SPXL and 3 Reasons Not To
SPXL aims to triple the daily gain of the S&P 500. But it resets itself daily, magnifies its declines, and charges high fees. It's not a good choice for long-term investors. 10 stocks we like better than Direxion Shares ETF Trust - Direxion Daily S&P 500 Bull 3x Shares › John Bogle, the founder of The Vanguard Group, once said the "winning formula for success in investing is owning the entire stock market through an index fund" since most professional fund managers couldn't beat the market over the long term. So instead of actively trading stocks, most investors should simply invest in a low-cost index fund that tracks the S&P 500 -- which has delivered an average annual return of 10% since its inception in 1957 -- and let it run. Bogle passed away in 2019, but the Vanguard S&P 500 Index Fund (NASDAQMUTFUND: VFIAX) and Vanguard S&P 500 ETF (NYSEMKT: VOO) remain popular investments for long-term investors. However, there are still plenty of ETFs that are trying to beat the S&P 500 with total return swaps, futures, options, and other derivatives. One of those ETFs is the Direxion Daily S&P 500 Bull 3X Shares (NYSEMKT: SPXL), a triple-leveraged ETF that aims to triple the daily performance of the S&P 500 (before its fees and expenses). Let's review the three reasons to buy this aggressive ETF -- and the three reasons to avoid it. SPXL might be an attractive investment for three reasons. First, SPXL could be a great way for short-term investors to rack up some quick daily gains. Second, it triples the S&P 500's daily performance with total return swaps and other derivatives. By bundling all that leverage, it becomes an attractive play for traders who don't want to take on margin. Third, SPXL has a daily trading volume of nearly 6.2 million shares as of this writing, which is comparable to the Vanguard S&P 500 ETF's trading volume. That liquidity should make it appealing to day and swing traders who need to quickly enter and exit their positions. Three issues could make SPXL a bad investment. First, it only tracks the S&P 500 on a daily basis instead of a cumulative basis because it resets its swaps every day. Second, it also triples the S&P 500's daily losses. So while SPXL might outperform the S&P 500 over a few days, a single market downturn could wipe out those gains. Those compounding effects can stack up faster in volatile markets. Even if the S&P 500 is flat for a day, SPXL's swaps, futures, and derivatives could erode its value. That "volatility drag" makes it a bad pick for long-term investors. That's why SPXL merely matched the S&P 500's 12% gain over the past 12 months instead of tripling its return. Last but not least, SPXL charges a high net expense ratio of 0.87%. Vanguard's S&P 500 ETF has a much lower expense ratio of 0.03%. So, unless you're trying to make a fast profit, it doesn't make much sense to touch this highly leveraged ETF. Bogle once said that "what may work for the few cannot work for the many" -- and he also warned that "speculation has no place in the portfolio or the kit of the typical investor." During a Forbes interview back in 2013, Bogle said leveraged ETFs like SPXL -- which try to double or triple the market's return with leverage -- were simply created as "gambling" tools, concluding, "What sense that makes is beyond my comprehension." So, as a long-term investor who admires people like Bogle, Warren Buffett, and Peter Lynch, I'd personally never touch leveraged ETFs like SPXL. These ETFs have been gaining a lot of attention on social media channels recently, but they're incredibly risky investments that could burn inexperienced investors. Before you buy stock in Direxion Shares ETF Trust - Direxion Daily S&P 500 Bull 3x 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 Daily S&P 500 Bull 3x 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 $689,813!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $906,556!* Now, it's worth noting Stock Advisor's total average return is 809% — a market-crushing outperformance compared to 175% 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 June 23, 2025 Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy. 3 Reasons to Buy SPXL and 3 Reasons Not To was originally published by The Motley Fool
Yahoo
29-05-2025
- Business
- Yahoo
IBIT Attracts $409M in Assets as Markets Decline
The iShares Bitcoin Trust ETF (IBIT) pulled in $409.3 million, increasing its total assets to $72.4 billion, according to data provided by FactSet. The inflows came as markets declined, with the S&P 500 falling 0.6% and the Dow Jones Industrial Average dropping 245 points. The Direxion Daily S&P 500 Bull 3x Shares (SPXL) attracted $367 million. Semiconductor ETFs saw strong demand, with the iShares Semiconductor ETF (SOXX) gaining $324.7 million and the VanEck Semiconductor ETF (SMH) pulling in $318.5 million. The SPDR Gold Shares (GLD) attracted $334.2 million. The iShares Core S&P 500 ETF (IVV) saw outflows of $326.6 million amid the broader market decline. The iShares Russell 1000 Growth ETF (IWF) lost $240.1 million, while the iShares 20+ Year Treasury Bond ETF (TLT) experienced outflows of $137.2 million as bond yields rose. U.S. fixed-income ETFs collected $984.6 million in inflows, while international equity ETFs gained $747.2 million. Commodities ETFs added $490.9 million, and currency ETFs attracted $430.8 million. Overall, ETFs gained $3.7 billion for the day. Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change IBIT iShares Bitcoin Trust ETF 409.26 72,396.12 0.57% SPXL Direxion Daily S&P 500 Bull 3x Shares 367.03 5,192.01 7.07% GLD SPDR Gold Shares 334.22 98,078.58 0.34% SOXX iShares Semiconductor ETF 324.68 11,814.19 2.75% SMH VanEck Semiconductor ETF 318.53 22,381.09 1.42% GLDM SPDR Gold MiniShares Trust 313.41 14,922.72 2.10% VCIT Vanguard Intermediate-Term Corporate Bond ETF 300.92 53,063.68 0.57% VOO Vanguard S&P 500 ETF 299.54 657,819.94 0.05% IWM iShares Russell 2000 ETF 186.93 63,566.64 0.29% SCHF Schwab International Equity ETF 142.36 47,540.28 0.30% Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change IVV iShares Core S&P 500 ETF -326.59 583,680.59 -0.06% IWF iShares Russell 1000 Growth ETF -240.06 105,667.20 -0.23% TLT iShares 20+ Year Treasury Bond ETF -137.21 50,322.95 -0.27% VONG Vanguard Russell 1000 Growth ETF -136.41 27,488.35 -0.50% USO United States Oil Fund LP -134.31 874.61 -15.36% IWD iShares Russell 1000 Value ETF -94.62 61,202.06 -0.15% VIG Vanguard Dividend Appreciation ETF -78.50 89,117.26 -0.09% TSLL Direxion Daily TSLA Bull 2X Shares -67.12 6,982.87 -0.96% MTUM iShares MSCI USA Momentum Factor ETF -57.64 16,889.96 -0.34% USFR WisdomTree Floating Rate Treasury Fund -54.84 18,834.93 -0.29% Net Flows ($, mm) AUM ($, mm) % of AUM Alternatives 8.71 10,027.66 0.09% Asset Allocation 6.41 24,615.25 0.03% Commodities ETFs 490.86 210,032.14 0.23% Currency 430.84 148,695.09 0.29% International Equity 747.24 1,785,368.44 0.04% International Fixed Income 211.09 289,624.62 0.07% Inverse 38.52 15,074.52 0.26% Leveraged 383.84 118,037.74 0.33% US Equity 377.64 6,745,930.45 0.01% US Fixed Income 984.57 1,657,004.91 0.06% Total: 3,679.71 11,004,410.81 0.03% Disclaimer: All data as of 6 a.m. Eastern time the date the article is published. Data are believed to be accurate; however, transient market data are often subject to subsequent revision and correction by the | © Copyright 2025 All rights reserved 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
Yahoo
29-05-2025
- Business
- Yahoo
IBIT Attracts $409M in Assets as Markets Decline
The iShares Bitcoin Trust ETF (IBIT) pulled in $409.3 million, increasing its total assets to $72.4 billion, according to data provided by FactSet. The inflows came as markets declined, with the S&P 500 falling 0.6% and the Dow Jones Industrial Average dropping 245 points. The Direxion Daily S&P 500 Bull 3x Shares (SPXL) attracted $367 million. Semiconductor ETFs saw strong demand, with the iShares Semiconductor ETF (SOXX) gaining $324.7 million and the VanEck Semiconductor ETF (SMH) pulling in $318.5 million. The SPDR Gold Shares (GLD) attracted $334.2 million. The iShares Core S&P 500 ETF (IVV) saw outflows of $326.6 million amid the broader market decline. The iShares Russell 1000 Growth ETF (IWF) lost $240.1 million, while the iShares 20+ Year Treasury Bond ETF (TLT) experienced outflows of $137.2 million as bond yields rose. U.S. fixed-income ETFs collected $984.6 million in inflows, while international equity ETFs gained $747.2 million. Commodities ETFs added $490.9 million, and currency ETFs attracted $430.8 million. Overall, ETFs gained $3.7 billion for the day. Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change IBIT iShares Bitcoin Trust ETF 409.26 72,396.12 0.57% SPXL Direxion Daily S&P 500 Bull 3x Shares 367.03 5,192.01 7.07% GLD SPDR Gold Shares 334.22 98,078.58 0.34% SOXX iShares Semiconductor ETF 324.68 11,814.19 2.75% SMH VanEck Semiconductor ETF 318.53 22,381.09 1.42% GLDM SPDR Gold MiniShares Trust 313.41 14,922.72 2.10% VCIT Vanguard Intermediate-Term Corporate Bond ETF 300.92 53,063.68 0.57% VOO Vanguard S&P 500 ETF 299.54 657,819.94 0.05% IWM iShares Russell 2000 ETF 186.93 63,566.64 0.29% SCHF Schwab International Equity ETF 142.36 47,540.28 0.30% Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change IVV iShares Core S&P 500 ETF -326.59 583,680.59 -0.06% IWF iShares Russell 1000 Growth ETF -240.06 105,667.20 -0.23% TLT iShares 20+ Year Treasury Bond ETF -137.21 50,322.95 -0.27% VONG Vanguard Russell 1000 Growth ETF -136.41 27,488.35 -0.50% USO United States Oil Fund LP -134.31 874.61 -15.36% IWD iShares Russell 1000 Value ETF -94.62 61,202.06 -0.15% VIG Vanguard Dividend Appreciation ETF -78.50 89,117.26 -0.09% TSLL Direxion Daily TSLA Bull 2X Shares -67.12 6,982.87 -0.96% MTUM iShares MSCI USA Momentum Factor ETF -57.64 16,889.96 -0.34% USFR WisdomTree Floating Rate Treasury Fund -54.84 18,834.93 -0.29% Net Flows ($, mm) AUM ($, mm) % of AUM Alternatives 8.71 10,027.66 0.09% Asset Allocation 6.41 24,615.25 0.03% Commodities ETFs 490.86 210,032.14 0.23% Currency 430.84 148,695.09 0.29% International Equity 747.24 1,785,368.44 0.04% International Fixed Income 211.09 289,624.62 0.07% Inverse 38.52 15,074.52 0.26% Leveraged 383.84 118,037.74 0.33% US Equity 377.64 6,745,930.45 0.01% US Fixed Income 984.57 1,657,004.91 0.06% Total: 3,679.71 11,004,410.81 0.03% Disclaimer: All data as of 6 a.m. Eastern time the date the article is published. Data are believed to be accurate; however, transient market data are often subject to subsequent revision and correction by the | © Copyright 2025 All rights reserved 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
