ERYDirexion Daily Energy Bear 3X Shares
ERY Fund Description
The Direxion Daily Energy Bear ETF provides 3x inverse exposure to a market-cap-weighted index of US large-cap companies in the energy industry.
ERY Factset Analytics Insight
ERY provides daily 3x exposure to the S&P Energy Select Sector Index—a constituency of energy companies derived from the S&P 500. Remember that this is an extremely concentrated sector, and therefore ERY is specifically a heavy bet on segment giants Exxon and Chevron, who account for roughly a third of the underlying index. Although ERY has an incredibly high expense ratio, consider that the fund is designed to be a short-term trading vehicle. ERY rebalances daily and, as a result, compounding and path dependency lead to a lack of predictability in the fund's long-term returns. Still, ERY has amassed a healthy asset base, with several million dollars trading hands in the fund on a given day. Large investors can get a fair deal when working with liquidity providers, while smaller investors can expect reasonably small bid/ask spreads.
ERY CHARTS AND PERFORMANCE
ERY Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of ERY. ERY is rated a 5 out of 5.