ERXDirexion Daily Energy Bull 3x Shares
ERX Fund Description
ERX provides 3x leveraged exposure to a market-cap-weighted index of US large-cap companies in the energy industry.
ERX Factset Analytics Insight
ERX provides 3x leveraged exposure to the S&P Energy Select Sector Index—a market-cap-weighted index of US energy companies from the S&P 500, heavily weighted towards the handful of firms that dominate the energy sector. Providing hyper-concentrated exposure to a concentrated sector, the ERX wasn't designed to be a long-term investment, but a short-term trading vehicle, making its high but typical fee less important. The fund rebalances daily. As a result, compounding and path dependency make its long-term returns difficult to predict when compared with its underlying index and beta-1 funds, such as XLE, that track that index. Despite this, ERX's asset base is indicative of strong investor interest, which is also reflected by ample liquidity and narrow spreads.
ERX CHARTS AND PERFORMANCE
ERX Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of ERX. ERX is rated a 5 out of 5.
Options Strategies for Outcome Investing
Options allow you to customize investment outcomes. Using the strategy builders provided by Cboe Vest Technologies, you can construct some of the most common option strategies. Check out our user guide for more information on how to use the tool.
A collar strategy is a protective option strategy constructed by writing a call and buying a put with the same expiration date while being long the underlying security.
A covered call is an income strategy constructed by writing a call option against a holding of the underlying security.