ETF Fund Objective: The Energy Bull 3X Shares seeks daily investment results, before fees and expenses, of 300% of the price performance of the Russell 1000® Energy Index ("Energy Index"). There is no guarantee the fund will meet its stated investment objective. Holdings The fund will invest at least 80% of assets in securities that comprise the index. It will also utilize financial instruments that, in combination, provide leveraged and unleveraged exposure to the index. Propspectus
Principal Investment Strategy. The Direxion Daily Energy Bull 3X Shares, under normal circumstances, creates long positions by investing at least 80% of its net assets in the equity securities that comprise the Energy Index. The Direxion Daily Energy Bull 3X Shares also will invest in Financial Instruments that, in combination, provide leveraged and unleveraged exposure to the Energy Index. The Direxion Daily Energy Bear 3X Shares does not invest in equity securities. Under normal circumstances, it creates short positions by investing at least 80% of its net assets in Financial Instruments that, in combination, provide leveraged and unleveraged exposure to the Energy Index, and the remainder in Money Market Instruments. On a day-to-day basis, the Direxion Daily Energy Bull 3X Shares also holds Money Market Instruments.
Perf Chart comparing The index to ERX
Perf Chart for ERX
A major component of this fund is DIREXION ENERGY INDEX SWAP
What is an Energy Swap (ES) transaction?
An ES transaction is an agreement between you and the Bank to swap a floating price for a fixed price for the underlying commodity. ES transactions allow you to achieve a fixed price, being your level of commodity price protection, for an agreed quantity of a commodity on an agreed future date that is more than 1 month (but not more than 2 years) after the trade date.
The floating price or commodity reference price in an ES transaction is based on the settlement price of an agreed futures contract for the underlying commodity on an agreed futures exchange or on the settlement price quoted in an agreed trade journal for the underlying commodity.
The fixed price is determined by the Bank. The commodity reference price applicable to a pricing period is calculated using the average rate method. Under this method, the sum of the daily settlement prices of a particular futures contract or the sum of the daily settlement prices quoted in an agreed trade journal on each business day in the pricing period is divided by the number of futures or trade journal business days in the pricing period.
Matthew Frailey daily
Big Cap 3x Bull (BGU) | Big Cap 3x Bear (BGZ) | Small Cap 3x Bull (TNA) | BGU-BGZ-TNA | | MajorMarket board
Energy 3x Bull (ERX) | Energy 3x Bear (ERY) | Financial 3x Bull (FAS) | Financial 3x Bear (FAZ)