DRIP Profile
The
S&P Oil & Gas Expl Bear -2X Direxion ETF (DRIP) is an exchange-traded
fund (ETF) that seeks to provide investors with inverse leveraged
exposure to the performance of the S&P Oil & Gas Exploration &
Production Select Industry Index. The fund's objective is to provide
double inverse (-2x) daily performance to the index.
DRIP uses
a strategy called &";inverse leveraged investing&"; to achieve its
objective. This means that the fund uses financial derivatives such as
swaps, futures contracts, and options to achieve double the inverse
daily performance of the index. This type of investment strategy is
considered to be higher risk, as it can magnify both gains and losses.
As of September 2021, the DRIP ETF has a net asset value (NAV) of
approximately $43 million and holds a basket of derivative contracts
and other financial instruments to achieve its investment objective.
The ETF's expense ratio is 0.95%, which is relatively high compared to
other ETFs.
It is important to note that DRIP is designed to be
a short-term trading tool and not a long-term investment. The fund's
leveraged strategy makes it more suitable for investors with a higher
risk tolerance and a short-term investment horizon. Additionally, the
fund's inverse performance means that it may not perform well in a
rising market for oil and gas exploration and production stocks.
Overall, the S&P Oil & Gas Expl Bear -2X Direxion ETF (DRIP) could
be a good investment option for investors looking to potentially
profit from a decline in the performance of the S&P Oil & Gas
Exploration & Production Select Industry Index with leverage. However,
as with any investment, it is important to conduct thorough research
and consider factors such as risk tolerance, investment objectives,
and fees before making a decision. Additionally, inverse and leveraged
ETFs can be riskier and more complex than traditional ETFs, and as
such, may not be suitable for all
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