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Direxion Daily Sp500 Bear 3x Shares
Direxion Daily S&P 500 Bear 3X Shares (SPXS) is a publicly traded exchange-traded fund (ETF) that seeks to provide three times the inverse daily performance of the S&P 500 Index. This means that if the S&P 500 falls by 1% on a particular day, the SPXS is expected to rise by approximately 3% that day. Conversely, if the S&P 500 rises by 1%, the SPXS is expected to fall by approximately 3%.
It is important to note that the SPXS is a leveraged ETF, which means it aims to deliver a multiple of the daily return of the underlying index. Leveraged ETFs are designed to be used as short-term trading tools and are not meant to be held as long-term investments. This is because the compounding of daily returns can cause the ETF to significantly deviate from its stated multiple of the underlying index over longer periods of time.
The SPXS does not pay dividends, as it does not invest in the stocks that make up the S&P 500. Instead, it achieves its investment objective through the use of swaps and other derivatives instruments.
As a bear fund, the SPXS is a way for investors to potentially profit from a decline in the S&P 500. However, as with any investment, there are risks involved and it's not guaranteed that it will achieve its stated objective.
Regarding earnings, the SPXS does not have earnings in the traditional sense of a company. Its performance is based solely on the performance of the S&P 500.
In terms of growth, the value of the SPXS is expected to increase when the S&P 500 decreases and decrease when the S&P 500 increases. As mentioned before, due to the compounding of daily returns, the SPXS may experience a divergence from its stated multiple of the underlying index over longer periods of time, so it's not a good fit for long-term growth.
It's also important to note that the SPXS, like all leveraged and inverse ETFs, are very complex and come with a high degree of risk and are rather intended for sophisticated investors and therefore a thorough understanding and due diligence is required before investing in this type of security.