For investors seeking momentum, Direxion Daily S&P 500 Bull 3X Shares (SPXL - Free Report) is probably on radar now. The fund just hit a 52-week high and is up nearly 13.2% from its 52-week low price of $31.26/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
SPXL in Focus
This fund creates a three times (3x) leveraged long position in the S&P 500 Index while charging 95 bps in fees a year. It has $582.7 million in AUM and trades in heavy volume of around 2.6 million shares on average (see: all the Leveraged Equity ETFs here).
Why the Move?
The U.S. equity market has been an area to watch lately given that the stocks are on fire and continuously scaling new highs downplaying all political concerns and rounds of weak economic data. This indicates that the eight-year old bull run still has legs. A large number of companies are moving higher with most of them hitting fresh highs lately confirming that the bulls are in control. In such a scenario, leveraged ETFs lead to huge gains in a very short spell.
More Gains Ahead?
The fund might remain strong given a high weighted alpha of 72.86% and a low 20-day volatility of 14.51%. As a result, there is still some promise for investors who want to ride on this surging ETF. However, it is extremely volatile and suitable only for short-term traders. Additionally, the daily rebalancing – when combined with leverage – may make this product deviate significantly from the expected long-term performance figures.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
For investors seeking momentum, Direxion Daily S&P 500 Bull 3X Shares (SPXL - Free Report) is probably on radar now. The fund just hit a 52-week high and is up nearly 13.2% from its 52-week low price of $31.26/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
SPXL in Focus
This fund creates a three times (3x) leveraged long position in the S&P 500 Index while charging 95 bps in fees a year. It has $582.7 million in AUM and trades in heavy volume of around 2.6 million shares on average (see: all the Leveraged Equity ETFs here).
Why the Move?
The U.S. equity market has been an area to watch lately given that the stocks are on fire and continuously scaling new highs downplaying all political concerns and rounds of weak economic data. This indicates that the eight-year old bull run still has legs. A large number of companies are moving higher with most of them hitting fresh highs lately confirming that the bulls are in control. In such a scenario, leveraged ETFs lead to huge gains in a very short spell.
More Gains Ahead?
The fund might remain strong given a high weighted alpha of 72.86% and a low 20-day volatility of 14.51%. As a result, there is still some promise for investors who want to ride on this surging ETF. However, it is extremely volatile and suitable only for short-term traders. Additionally, the daily rebalancing – when combined with leverage – may make this product deviate significantly from the expected long-term performance figures.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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