Direxion Daily HOOD Bull 2X ETF

Frequently Asked Questions About HODU

What does HODU invest in?

The Direxion Daily HOOD Bull 2X ETF is designed to achieve daily investment results that are double the performance of Robinhood Markets, Inc.'s (NASDAQ: HOOD) common stock. This target is measured prior to the deduction of any associated fees and operational expenses.

What is the expense ratio of HODU?

Direxion Daily HOOD Bull 2X ETF (HODU) charges an expense ratio of 0.99%. This is the annual fee deducted from fund assets to cover management and operations.

Is HODU a good long-term hold?

HODU 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 HODU's daily reset work?

HODU 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 HODU?

Direxion Daily HOOD Bull 2X ETF (HODU) manages $9.6M 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 HODU actively managed or an index fund?

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