Direxion Daily Energy Bull 2X ETF

Frequently Asked Questions About ERX

What does ERX invest in?

The Direxion Daily Energy Bull and Bear 2X ETFs are structured to provide daily investment returns that correspond to twice (200%) the performance of the Energy Select Sector Index, before accounting for fees and other expenses. Specifically, the "Bull" version aims for double the index's positive daily movement, while the "Bear" counterpart targets two times the index's inverse (opposite) daily performance. It's crucial to understand, however, that there is no guarantee these funds will consistently achieve their stated investment objectives.

What is the expense ratio of ERX?

Direxion Daily Energy Bull 2X ETF (ERX) charges an expense ratio of 0.91%. This is the annual fee deducted from fund assets to cover management and operations.

Is ERX a good long-term hold?

ERX 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 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 ERX's daily reset work?

ERX 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 ERX?

Direxion Daily Energy Bull 2X ETF (ERX) manages $251.4M 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 ERX actively managed or an index fund?

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