Direxion Daily Gold Miners Be (DUST)

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Following the March 13th peak, DUST cratered more than 80% in value.

Adding to DUST's problems was the fact that it was disconnecting from its underlying index. Small premiums and discounts can be expected from time to time in ETFs, but DUST's premium spiked to as much as 24% and its discount sunk to as low as -8%.


The Fed has since stepped in to reduce some of the market's overall volatility, but DUST's problems were bigger than that.

What Caused The Change In Leverage Exposure?
In short, it's a liquidity issue. The commodities markets have been very volatile to begin with, which has certainly contributed to its issues, but the imbalance of buyers and sellers and the rising costs of attempting to establish leveraged exposure to certain sectors has made it impractical to continue with its objective for the time being.

DUST is a very risky investment under normal market conditions, but the current bear market in commodities has highlighted some of the additional risks that come with these types of products, notably a lack of liquidity and the possibility of disconnecting from its underlying asset.