JNUG - Direxion Daily Junior Gold Miners Index Bull 2X Shares

NYSEArca - Nasdaq Real Time Price. Currency in USD
109.00
-1.39 (-1.26%)
At close: 4:00PM EDT
Stock chart is not supported by your current browser
Previous Close110.39
Open108.89
Bid108.51 x 1000
Ask109.00 x 1100
Day's Range108.38 - 115.31
52 Week Range33.20 - 1,052.40
Volume1,768,448
Avg. Volume3,173,777
Net Assets670.21M
NAV108.62
PE Ratio (TTM)N/A
Yield1.79%
YTD Daily Total Return-86.95%
Beta (5Y Monthly)3.28
Expense Ratio (net)1.12%
Inception Date2013-10-03
  • JNUG Stock is a Terrible Investment For Most Types of Traders
    InvestorPlace

    JNUG Stock is a Terrible Investment For Most Types of Traders

    The stock market's recent volatility has brought about a new generation of traders who use low-cost brokers in order to place trades via apps. But with many of the barriers to trading removed, quite a few novice traders have decided to dive in the deep end using complex investment vehicles to make a quick buck. Increasing interest in Direxion Daily Junior Gold Miners Bull 2X ETF (NYSEARCA:JNUG) stock is a perfect example.Source: Shutterstock Data from millennial-favorite trading app Robinhood shows that JNUG was one of the app's most popular ETFs, with more than 43,000 investors adding it to their holdings. The platform also noted that it believes its users could make up a significant portion of the leveraged ETF's holders. Why JNUG is Riddled With RiskLeveraged ETFs are often regarded as sophisticated investment vehicles that should be left to the pros, or at the very least, seasoned day-traders. There are a few reasons for that, one of them being the discipline and understanding investors need in order to use them properly. InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs InvestorPlace's Tezcan Gecgil laid out in detail earlier in May, JNUG isn't a simple bet on gold. It tracks the MVIS Global Junior Gold Miners Index and aims at delivering a 200% or -200% return for that index each day. Importantly, the 'single day' aspect of JNUG's leverage means it's not a stock you can add to your portfolio and hold on to because the losses will add up. * 7 Great Biotech Stocks to Buy and Hold Now Plus, the gold miners JNUG is investing in are some of the riskiest in the business. Add in ongoing gold price volatility and you have a recipe for a nail-biting investment vehicle that isn't worth the headache for 9 out of 10 retail investors. First Time Traders Dive in DeepWhat's troubling is the fact that Robinhood's user base is primarily made up of retail investors. In fact, the firm even claims most of them are trading stocks for the first time ever. It's hard to imagine any scenario in which Robinhood's traders should be picking up JNUG stock -- unless they're day traders.The lockdowns gave people more time to take an interest in their financial health, and many have pursued investing as a result. But the sudden leap into risky investments like JNUG stock and bankrupt rental car company Hertz (NYSE:HTZ) has been unexpected.Anecdotal evidence suggests that some of the interest comes from ex-sports betters who are used to taking on a great deal of risk. This brand of traders is best characterized by Dave Portnoy of Barstool Sports, who has been trading since the March crash and updating followers on his bets via videos uploaded to social media. Leave Gambling Out of ItAs I mentioned before, there's definitely a market for JNUG stock, but not a huge one. And certainly not one for first-time retail traders. The leveraged ETF is better left to more experienced traders who have the time and dedication to use it in addition to other investment vehicles.Robinhood and the plethora of other low-cost trading platforms have been a huge step forward in making investing more accessible to the masses. But the flip side of that coin is that many people are taking on a huge amount of unnecessary risk. While it can be tempting to make big, risky bets in hopes of a large payoff, for the average investor, slow and steady growth is the best strategy. Find Another Way to Buy GoldIf buying gold for protection is your aim, JNUG stock couldn't be further from the goal. Instead, there are a lot of ways to use gold as a defensive play in your portfolio. SPDR Gold Shares (NYSEARCA:GLD) is an ETF that tracks the performance of gold bullion itself. There are others like the Sprott Gold Miners ETF (NYSEARCA: SGDM) that offer exposure to mining companies. For those who are interested in taking on a bit more risk (but perhaps not as much as JNUG stock has to offer), there's the VanEck Vectors Junior Gold Miners ETF (NYSEARCA:GDX). Laura Hoy has a finance degree from Duquesne University and has been writing about financial markets for the past eight years. Her work can be seen in a variety of publications including InvestorPlace, Benzinga, Yahoo Finance and CCN. As of this writing, she did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * Top Stock Picker Reveals His Next 1,000% Winner * The 1 Stock All Retirees Must Own * Look What America's Richest Family Is Investing in Now The post JNUG Stock is a Terrible Investment For Most Types of Traders appeared first on InvestorPlace.

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  • Be Careful Using Leveraged JNUG Stock to Buy Gold
    InvestorPlace

    Be Careful Using Leveraged JNUG Stock to Buy Gold

    In 2020, one of the most trusted asset classes has possibly been gold, with the shiny metal up about 13%. One way to play the recent gold rush is a leveraged exchange traded fund, such the Direxion Daily Jr. Gold Miners Bull 2X ETF (NYSEARCA:JNUG). Year-to-date, JNUG stock is down about 87%.Source: Shutterstock JNUG tracks the MVIS Global Junior Gold Miners Index (MVGDXJ). And it seeks a 200% or -200%, i.e., 2X, of the return of this benchmark index for a single day. This daily leverage gives JNUG certain characteristics that may make it a rather inappropriate long-term holding for most retail investors.Let's see why.InvestorPlace - Stock Market News, Stock Advice & Trading Tips JNUG Stock is a Leveraged ETF (LTEF)Many investors are familiar with a wide range of exchange traded funds that enable them to track the price of the commodity. Examples include the SPDR Gold Shares (NYSEARCA:GLD) or SPDR Gold MiniShares SPDR Gold MiniShares (NYSEARCA:GLDM). Year-to-date, they are up 14% each.There are also investment funds that invest in various miners, such as the VanEck Vectors Gold Miners ETF (NYSEARCA:GDX) or the VanEck Vectors Junior Gold Miners ETF (NYSEARCA:GDXJ). In 2020, they are up 23% and 12% respectively. * 7 Excellent Penny Stocks Ready to RoarIt is important to remember that JNUG stock is a leveraged exchange traded fund (LTEF). Two of the most popular LTEFs include JNUG and the Direxion Daily Gold Miners Bull 2X ETF (NYSEARCA:NUGT). And leverage makes the long-term performance of both JNUG and NUGT differ than the performance of the underlying assets. Similar to JNUG stock, NUGT is also down 55% so far in the year.Put another way, although GLD, GLDM, GDX and GDXY are up considerably so far in 2020, the same is not true for either JNUG or NUGT. Similarly, MVGDXJ, the index that JNUG tracks is up 13% in 2020.Over the past five months, these leveraged exchange-traded funds have not at all performed like the ETFs that track either the commodity of various gold miners.This discrepancy in long-term returns is due to the daily leverage used. How Leveraged ETFs WorkA 2X leveraged ETF like JNUG stock is structured to be constantly 2X leveraged on a daily basis. This 2X long LTEF needs to buy every day underlying asset prices go up, and sell when they go down.The leverage is achieved through the use of rather sophisticated financial instruments, such as swaps, futures, and options. However, the daily resetting involved in JNUG stock is rather complex and makes it a no-go as a long-term holding. The compounding effects of daily returns work against long-term investors.JNUG stock also has a "bear inverse" ETF, i.e., Direxion Daily Jr. Gold Miners Bear 2X ETF (NYSEARCA:JDST). Simply stated, JNUG stock is 2X bull and JDST stock is 2X bear.Let's compare the performance of both indices as of March 31, 2020: * 5-year return: JNUG -52.90% and JDST -80.37% (i.e., both returns are negative) * 3-year return: JNUG -68.8% and JDST -63.7% (i.e., both returns are negative) * 1-year return: JNUG -92.0% and JDST down -92.8% (i.e., both returns are negative)In theory, short-term (possibly day) traders could consider JNUG stock to go long smaller gold miners and JDST to go short.But looking at the performance over time, long-term traders should not consider JNUG stock to go long. Instead it looks as a vehicle of wealth destruction. How is that possible?Let's see an example. For example, if the underlying index MVGDXJ moves down 5% on a given day, then JNUG stock should move down 10%. If we assume a stock price of $10, JNUG should be down to about $9 after the first day.On the second day, if the MVGDXJ moves up 5%, over the two days the MVGDXJ return will be -0.25%. A long-term retail investor may think JNUG should be down 0.5%. Yet, the 10% increase on day two will bring shares up from $9 to $9.90, and the JNUG stock would, in reality, be down by 1%.And any investor who holds these leveraged ETFs for a long-period will find out that his or her capital would eventually be eaten up by this volatility and daily re-balancing. Thus JNUG stock can only be appropriate for experienced short-term traders looking for leverage and volatility. The Bottom Line on JNUG StockBefore you decide to buy leveraged ETFs, such as JNUG stock, it'd be extremely important to understand how they work, with an emphasis on their drawbacks. The use of leverage as well as volatility give their unique properties to these funds. Gold is quite a volatile commodity, and gold miners are a leveraged play on gold prices.Therefore, the long run returns of a 2X ETF like JNUG stock are rather dangerous and unpredictable. Even if the underlying index moves in favor of the LTEF, JNUG stock might still lose considerable value over the long term.As you increase your knowledge base on these leveraged exchange-traded funds, you may quickly realize that LETFs are likely to be more appropriate for professional traders for hedging purposes than buy-and-hold retail investors.Tezcan Gecgil has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation. As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Be Careful Using Leveraged JNUG Stock to Buy Gold appeared first on InvestorPlace.

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  • Direxion Announces Reverse Splits of Twelve ETFs
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    PR Newswire

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    PR Newswire

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    PR Newswire

    Direxion Expedites the Change in Investment Objectives and Strategies of Ten Daily Leveraged and Daily Inverse Leveraged Funds

    The investment objective and strategy of each Fund in the table below is currently to seek daily leveraged, or daily inverse leveraged, investment results, before fees and expenses, of 300% or -300%, as applicable, of the performance of its underlying index. Effective after market close on March 31, 2020 each Fund's investment objective and strategy will change to seek daily leveraged, or daily inverse leveraged, investment results, before fees and expenses, of 200% or -200%, as applicable, of the performance of its underlying index, as shown below:

  • Direxion Daily Junior Gold Miners Index Bull 3X Shares Underexposed at Market Open
    PR Newswire

    Direxion Daily Junior Gold Miners Index Bull 3X Shares Underexposed at Market Open

    Due to significant market disruption and volatility, the Direxion Daily Junior Gold Miners Index Bull 3X Shares (JNUG) will not have exposure of 300% to the market today. At market open, the Direxion Daily Junior Gold Miners Index Bull 3X Shares will have exposure of approximately 260%. This reduced exposure is for today, March 27, 2020, only.

  • Direxion Daily Gold Miners Index Bull 3X Shares and Direxion Daily Junior Gold Miners Index Bull 3X Shares Underexposed at Market Open
    PR Newswire

    Direxion Daily Gold Miners Index Bull 3X Shares and Direxion Daily Junior Gold Miners Index Bull 3X Shares Underexposed at Market Open

    Due to significant market disruption and volatility on March 24, 2020, the Direxion Daily Gold Miners Index Bull 3X Shares (NUGT) and Direxion Daily Junior Gold Miners Index Bull 3X Shares (JNUG) will not have exposure of 300% to the market today. At market open, the Direxion Daily Gold Miners Index Bull 3X Shares and Direxion Daily Junior Gold Miners Index Bull 3X Shares will have exposure of approximately 220% and 220%, respectively. This reduced exposure is for today, March 25, 2020, only.

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    PR Newswire

    Direxion Changes Objectives Of Ten Leveraged Funds To Address Extreme Market Conditions, While Also Closing Eight Funds Due to Limited Interest Since Launch

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    Central Bank Policies Should Continue to Support Gold Prices

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    Coronavirus Outbreak Allows Gold Prices to Break Out

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    Good To Be Loving Leverage With Gold Miners

    Some commodities market observers believe that trend will continue in 2020, potentially spelling opportunity for nimble traders with geared ETFs such as the   Direxion Daily Gold Miners Bull 3X ETF (NUGT) and   Direxion Daily Jr Gold Miners Bull 3X ETF (JNUG) . NUGT seeks daily investment results, before fees and expenses, of either 300% or 300% of the inverse (or opposite), of the performance of the NYSE Arca Gold Miners Index. JNUG seeks daily investment results, before fees and expenses, of 300% of the performance of the MVIS Global Junior Gold Miners Index.

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