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

[Bruce A Thompson]

HHHG Wednesday, 10/08/14 05:21:33 PM
Re: barcoded post# 1020
Post # of 2195
Anyone who posts about fearing a Reverse Split on this or any 3x fund is a true naive amateur, so I suggest you ignore any comments made by people about such topic from time-to-time.
3x Funds or any ETF/ETN DO NOT operate and function in same manner as typical common stock shares.
I agree that rev splits are bad when referring to standard common stock shares... But whenever 3x funds do any splits, the market cap stays same in a split basis and all daily movements are based on the underlying fund based structure (such as JNUG moves % based upon daily of the GDXJ movement regardless of any split factor).
Before, during, after an effective split, the 3x fund will move the same % each day correlated to its underlying product (and GDXJ in case of JNUG-JDST).

For example:
I traded thru NUGT & DUST last year in August 2013 when they went thru Rev & Forward Splits, and there was no affect. They moved only on the GDX miners performance % was same on the $$$$ invested into them during the split processes. The # shares & price converted, but the capitalization of the Fund & invested $$$ stayed same and thus moved only based on GDX movement for NUGT & DUST.