Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 2X ETF

Frequently Asked Questions About DRIP

What does DRIP invest in?

The index measures the performance of the domestic companies included in the integrated oil and gas, oil and gas exploration and production and oil and gas refining and marketing sub-industries as classified by the GICS. The fund invests at least 80% of its net assets in financial instruments, that, in combination, provide 2X daily inverse (opposite) or short exposure to the index or to ETFs that track the index, consistent with the fund’s investment objective. It is non-diversified.

What is the expense ratio of DRIP?

Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 2X ETF (DRIP) charges an expense ratio of 1.03%. This is the annual fee deducted from fund assets to cover management and operations.

Is DRIP a good long-term hold?

DRIP is a leveraged fund designed to deliver a daily multiple of its underlying index. Daily reset compounding means returns over multi-day periods can diverge significantly from the headline multiple, typically with negative drift in choppy markets. These funds are designed for short-term tactical use, not buy-and-hold. Review the fund's prospectus before holding more than a few days.

How does DRIP's daily reset work?

DRIP rebalances exposure each trading day to maintain its target leverage ratio against the next day's move. The daily reset means returns compound at the daily level, so a +1%, −1% sequence on the underlying doesn't return the underlying to flat after the leverage multiplier. Over time this path-dependence erodes returns in volatile markets and amplifies them in trending markets.

How big is DRIP?

Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 2X ETF (DRIP) manages $146.1M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure. Funds below ~$50M are at higher risk of liquidation.

Is DRIP actively managed or an index fund?

DRIP's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.