SPXL Profile
The
S&P 500 Bull 3X Direxion ETF (SPXL) is an exchange-traded fund (ETF)
that seeks to provide investors with three times the daily performance
of the S&P 500 Index. The ETF's objective is to provide investors with
leveraged exposure to the US equity market.
SPXL invests in a
portfolio of US large-cap stocks included in the S&P 500 Index, with
the goal of providing investors with triple the daily return of the
index. The ETF uses leverage to achieve this goal, borrowing money to
increase the size of its investment in the index.
As of
September 2021, the SPXL ETF has a net asset value (NAV) of
approximately $2 billion and holds a portfolio of US large-cap stocks
included in the S&P 500 Index. The ETF's expense ratio is 0.95%, which
is higher compared to other ETFs.
SPXL has a track record of
providing investors with amplified returns, but it is important to
note that the ETF's returns can also be amplified on the downside.
Since its inception in 2008, the fund has provided investors with an
annualized return of around 19% (as of March 23, 2023). However, the
ETF is designed for short-term trading and is not meant to be held for
an extended period of time.
Overall, the S&P 500 Bull 3X
Direxion ETF (SPXL) could be a good investment option for investors
looking for leveraged exposure to the US equity market. However, due
to its high expense ratio and amplified risk profile, it may not be
suitable for all investors. Additionally, the ETF's returns may
deviate significantly from the returns of the underlying index over
longer periods of time, due to the effects of compounding and
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