PILS Fund Description
The Direxion Daily Pharmaceutical & Medical Bear 2x Shares ETF provides 2x inverse daily exposure to a multi-factor constructed index of pharmaceutical companies in the US.
PILS Factset Analytics Insight
Note: This fund is closed. Its last day of trading was 3/31/17.
PILS seeks to deliver -200% of the daily performance of the Dynamic Pharmaceutical Intellidex Index – the same index underlying PJP. The index is built using a quant-driven methodology to select and weight pharmaceutical companies based on fundamental and risk factors. PILS uses both exchange-traded and over-the-counter derivative contracts to achieve its goal.
As with all inverse funds PILS should not be expected to deliver 2 times the inverse performance of its index for periods longer than 1 day - compounding and path-dependency can cause significant deviations over longer time frames.
Because of that, PILS is only appropriate as a tool for placing tactical bets and not as a permanent holding in a portfolio. Hence the cost of getting in and out of the fund - spreads and any premium/discount - is more important than the fund’s relatively high expense ratio.
In this regard, it remains to be seen if PILS achieves enough liquidity to become a viable option for placing short term bets on the direction of the pharmaceutical industry. It’s worth noting, though, that the fund is not really a pure play on the sector, as some biotech companies also find their way into the underlying index.
PILS Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of PILS. PILS is rated a N/A out of 5.