Direxion Daily S&P Oil & Gas Exploration & Production Bull 2X (GUSH)

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They do that because they have toxic warrants or toxic notes. The warrant or note holders convert to stock then short the piss out of the stock. As the stock goes down they get more and more shares. They flood the market with shares. After a split the stock falls massively because it isn't the actual split that makes it crash. It is the toxic financing deals (warrants or notes). The stock was falling in that case before the split and will after the split because of the toxic financing. Think cause and effect. The R/S isn't the cause of the death spiral in stock price, it is a consequence. The toxic dilution is the cause. Now with these ETFs they are just leveraged derivatives of something else. In this case the XOP. This just does whatever the XOP does. There is no toxic warrants or notes etc. If the XOP drops hard then yes this drops harder but that is simply just trading action. It isn't for the same reason that happens in pennyland. In pennyland R/S are a consequence of the cause (toxic dilution), here if there is a big drop it is just an effect that the XOP had a bad day, the sector it is had a bad day. If that sector has been having a bad couple of months or whatnot then the 3 times derivative (this thing) is going to need a R/S.