DGLDVelocityShares 3X Inverse Gold ETN
DGLD Fund Description
The VelocityShares 3X Inverse Gold ETN provides -3x the daily return of the front-month gold futures contract.
DGLD Factset Analytics Insight
Like most geared inverse products, DGLD is designed as a tactical trading tool, not as a buy-and-hold investment. The note promises to provide -3x exposure to its referenced index—the S&P GSCI Gold Excess Return Index—for a one-day holding period. The daily reset function means investors holding DGLD for periods of longer than one trading day will be exposed to the effects of compounding, and could see returns vary greatly from the headline -3x exposure. Since DGLD tracks an excess return version of the S&P GSCI Gold Index, returns will reflect both the changes in the price of gold and returns from rolling futures contracts, but not any income from collateral. Although its fee is extremely high, trading costs are of greater importance, since the fund is designed for intraday round-trip trades. The market for this ETN is strong, with decent daily volume and small spreads, so those trading costs should not be too bad.
DGLD CHARTS AND PERFORMANCE
DGLD Portfolio Data
DGLD Index Data
DGLD Fund Structure
DGLD Tax Exposures
DGLD Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of DGLD. DGLD is rated a 5 out of 5.