Direxion Daily Junior Gold Miners Index Bull 2X Shares (JNUG)

[Qone0]

OK, I see that. So my question now is when does the NAV burn take place. believe I have found the answer.

It has nothing to do with time. This is from the fund.

1. Market Rises Steadily If the benchmark index moves in a direction favorable to the fund (meaning up for a bull fund and down for a bear fund) in a linear trend for a period greater than one day, the fund’s gain for the period may be larger than the cumulative index return multiplied by the fund’s stated multiple (eg. 3x, -2x, etc). This is because as the fund’s net assets rise with the favorable market fluctuation, the fund must respond by increasing its exposure to the index, which therefore amplifies the impact of subsequent favorable index movements.

This is why there is no NAV decay during a trend.

This is where the NAV decay takes place.

In volatile markets that exhibit no clear trend or direction, the impact of daily rebalancing can be harmful to the performance of leveraged ETFs over time. As described above, the funds respond to gains by increasing exposure to the index, and respond to losses by decreasing exposure each day. Increased exposure in advance of a loss will generate a larger loss, and decreased exposure in advance of a gain will decrease the impact and benefit of future gains for the fund. A continued pattern of this sort will typically cause the decay of the longer term returns of the fund.