Direxion Daily Gold Miners Index Bull 2X ETF

Frequently Asked Questions About NUGT

What does NUGT invest in?

These Direxion Exchange Traded Funds (ETFs) are designed to deliver daily investment returns that, before accounting for fees and expenses, aim to be either 200% of the performance of the MarketVector Global Gold Miners Index or 200% of its inverse (opposite) movement. It is important to note that there is no guarantee these funds will achieve their stated objectives.

What is the expense ratio of NUGT?

Direxion Daily Gold Miners Index Bull 2X ETF (NUGT) charges an expense ratio of 1.13%. This is the annual fee deducted from fund assets to cover management and operations.

Is NUGT a good long-term hold?

NUGT 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 NUGT's daily reset work?

NUGT 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 NUGT?

Direxion Daily Gold Miners Index Bull 2X ETF (NUGT) manages $843.0M 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 NUGT actively managed or an index fund?

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