GUSH Profile
Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X Shares is an exchange-traded fund designed to provide daily leveraged exposure to the oil and gas exploration and production sector. The fund aims to achieve twice the daily performance of the S&P Oil & Gas Exploration & Production Select Industry Index, which measures the performance of the oil and gas exploration and production sub-industry as defined by the Global Industry Classification Standard (GICS). This leveraged approach is intended to amplify the returns of the underlying index on a daily basis, offering investors the potential for enhanced gains in rising markets.
To achieve its investment objective, the fund normally allocates at least 80% of its net assets to a range of financial instruments. These include swap agreements, securities that are part of the index, and exchange-traded funds (ETFs) that track the index or similar financial instruments. The use of these instruments allows the fund to maintain its targeted level of leverage, providing investors with exposure to the oil and gas exploration and production sector that is twice the daily return of the index.
The S&P Oil & Gas Exploration & Production Select Industry Index includes companies that are primarily involved in the exploration and production of oil and natural gas. This index is a subset of the broader S&P Total Market Index and focuses on the segment of the industry dedicated to extracting and producing oil and gas. The fund's investment strategy is designed to capture the performance of this specific sector, which can be highly sensitive to fluctuations in commodity prices, geopolitical events, and other market factors.
As a non-diversified fund, Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X Shares may concentrate its investments in fewer securities compared to more broadly diversified funds. This concentration can lead to higher volatility and potential for greater losses or gains relative to more diversified investment options. Investors should be aware of the risks associated with leveraged and concentrated investments and consider their risk tolerance and investment objectives when evaluating this fund.
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