PILL Fund Description
The Direxion Daily Pharmaceutical & Medical Bull 3x Shares ETF provides 3x daily exposure to a multi-factor index of pharmaceutical companies in the US.
PILL Factset Analytics Insight
PILL seeks to deliver daily investment results of 3x the performance of the Dynamic Pharmaceutical Intellidex Index. The underlying index is built using a quant-driven methodology to select and weight pharmaceutical companies based on fundamental and risk factors. Unlike PJPan unlevered PowerShares ETF following the same indexPILL uses derivatives, such as swaps, to achieve its exposure. Its worth noting that the fund is not a pure pharma play, as some biotech companies also find their way into the index.
As with all levered funds PILL should not be expected to deliver 3 times the performance of its index for periods longer than 1 daycompounding and path-dependency can cause significant deviations over longer time frames. PILL is only appropriate for short-term, tactical bets and not as a permanent holding. Hence, the cost of getting in and out of the fundspreads, commissions, and any premium/discountis more important than the funds expense ratio.
PILL originally provided 2 times the daily performance of the index, but failed to attract interest; the fund closed in March 2017. The current version tracks the same index, but with 3x leverage and a higher expense ratio.
PILL Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of PILL. PILL is rated a N/A out of 5.