GDXSProshares Ultrashort Gold Miners
GDXS Fund Description
GDXS provides daily 2x inverse exposure to a market-cap-weighted index of global gold and silver mining firms.
GDXS Factset Analytics Insight
GDXS is a daily 2x inverse bet on the NYSE Arca Gold Miners Index. The fund uses derivative contracts to achieve its exposure and resets its leverage on a daily basis. Because of that, the fund's return over a holding period greater than one-day is affected by compounding math, and will diverge from -2x the return of the index over the same period. Thus, GDXS is designed mostly for intra-day trading. When deciding to how to use these funds, also consider that gold miners' fortunes do not necessarily move in lockstep with gold. A host of factors, beyond spot price, come into play here: from the price of oil—which is the main input for any miner—to the size the equity premium in the broad market. GDXS competes with Direxion's DUST, which provides 3x inverse exposure to the same index for a similarly high annual fee. In reality, the expense ratio has minimal impact on the cost of holding these funds for a short period of time. Trading costs, as reflected in spreads and potential premium/discounts, are the predominant consideration here. On this score GDXS manages a middling performance: volume is adequate but spreads are generally high, raising the round-trip cost for traders.
GDXS CHARTS AND PERFORMANCE
GDXS Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of GDXS. GDXS is rated a N/A out of 5.