|Bid||0.00 x 800|
|Ask||0.00 x 1200|
|Day's Range||24.56 - 25.37|
|52 Week Range||12.43 - 43.94|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||3.26|
|Expense Ratio (net)||1.09%|
See what sectors have led the stock market higher in early 2019. Ride short-term momentum using these three leveraged sector ETFs.
Optimism is prevailing around U.S.-Sino trade, oil price and U.S. government shutdown. This should boost the following leveraged ETFs.
Amid the renewed optimism, many investors have turned bullish on the energy sector and are seeking to tap this opportunity. For them, a leveraged play on energy or oil could be an excellent idea.
Note in the chart below how energy was beating the market by 20%, but now is trailing by 10%—quite the 30% reversal.ERX (3X Bull Energy) and ERY (3X Bear Energy) can help you hedge or make the bounce-back bet, whichever you opt for. US-China trade war concerns affected crude oil prices as the dispute between the two nations is expected to affect global economic growth. Adding fuel to the fire are the US sanctions against Iran’s oil sector, which affected crude oil prices further.
Many institutional traders use multi-faceted strategies that involve several different instruments when trading around an earnings report. Among the most common hedging tools used by institutions are leveraged ETFs, which are built to deliver multiples (or inverse multiples) on a given index. “They aren’t meant to be held for more than a few days at a time,” Sylvia Jablonski, managing director of leveraged ETF provider Direxion ETFs said.
While energy stocks have been surging, Direxion data indicate traders have been taking profits in the bullish ERX while adding capital to the bearish ERY. Traders favoring ERY over ERX is notable for several reasons, not the least of which is that the energy sector is entering a time of the year that has been unkind to energy stocks.
Looking at the year-to-date fund flows of Direxion ETFs, the largest issuer of leveraged ETFs, the Direxion Daily Financial Bull 3x Shares (NYSE: FAS) has had $227.78 million of inflows in 2018, making it the Direxion fund with the most growth this year. Interestingly, the Direxion Daily S&P 500 Bull 3x Shares (NYSE: SPXL) has had $217.56 million of inflows this year, making it the second most popular of Direxion’s 70 leveraged ETFs. “If you look at 2017, the growth flow we had in our S&P products for the entire year, we’ve had more than half of that amount in the first few months of this year,” said Sylvia Jablonski, managing director of Direxion.
With oil prices surging, the energy sector is getting in on the act. Predictably, that's been good news for the Direxion Daily Energy Bull 3X Shares (NYSE: ERX ). ERX attempts to deliver triple the daily ...