 The
Real Estate Bull 3X Direxion ETF (DRN) is an exchange-traded fund
(ETF) that seeks to provide investors with leveraged exposure to the
performance of the MSCI US REIT Index. The fund's objective is to
provide 3x leveraged daily performance to the index.
DRN uses a
strategy called "leveraged investing" to achieve its objective. This
means that the fund uses financial derivatives such as swaps, futures
contracts, and options to achieve triple the daily performance of the
index. This type of investment strategy is considered to be higher
risk, as it can magnify both gains and losses.
As of September
2021, the DRN ETF has a net asset value (NAV) of approximately $295
million and holds a basket of derivative contracts and other financial
instruments to achieve its investment objective. The ETF's expense
ratio is 1.07%, which is relatively high compared to other ETFs.
It is important to note that DRN is designed to be a short-term
trading tool and not a long-term investment. The fund's leveraged
strategy makes it more suitable for investors with a higher risk
tolerance and a short-term investment horizon.
Overall, the
Real Estate Bull 3X Direxion ETF (DRN) could be a good investment
option for investors looking to potentially profit from the
performance of the MSCI US REIT Index with leverage. However, as with
any investment, it is important to conduct thorough research and
consider factors such as risk tolerance, investment objectives, and
fees before making a decision. Additionally, leveraged ETFs can be
riskier and more complex than traditional ETFs, and as such, may not
be suitable for all investors.
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