Direxion Daily Gold Miners Bull 2X (NUGT)

[dude iligence]

revised definition of Dilution- Direxion creates new share units is when NUGT is trading at a premium to its indicative value. This occurs when supply/liquidity is lower than demand for shares. They create new share units in order to eliminate this premium, to keep the NAV of the fund equal to the IV of the fund. In other words - they create new shares when demand has driven the spot price of the fund above its actual value in order to make sure the fund is behaving according to its prospectus.



In other words they only dilute when the current shareholders aren't selling and new shareholders are standing at the truck screaming I gotta get in, I gotta get in.