Direxion Daily Junior Gold Miners Index Bull 2X ETF

Frequently Asked Questions About JNUG

What does JNUG invest in?

These specialized Direxion funds, comprising both a "Bull" and a "Bear" version, aim to deliver daily investment returns that either double the performance of the MVIS Global Junior Gold Miners Index, or double its inverse movement. This calculation is made before any deductions for fees and operational expenses. However, it's crucial to understand that the consistent achievement of these stated financial objectives is not assured.

What is the expense ratio of JNUG?

Direxion Daily Junior Gold Miners Index Bull 2X ETF (JNUG) charges an expense ratio of 1.03%. This is the annual fee deducted from fund assets to cover management and operations.

Is JNUG a good long-term hold?

JNUG 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 JNUG's daily reset work?

JNUG 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 JNUG?

Direxion Daily Junior Gold Miners Index Bull 2X ETF (JNUG) manages $333.2M 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 JNUG actively managed or an index fund?

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