GDXXProShares Ultra Gold Miners
GDXX Fund Description
GDXX provides daily 2x leveraged exposure to a market-cap-weighted index of global gold and silver mining firms.
GDXX Factset Analytics Insight
GDXX is a daily 2x leveraged bet on the NYSE Arca Gold Miners Index. The fund's return for periods longer than a day is subject to compounding effects and is likely to be different from 2x the return of the index for the same period. This makes GDXX suitable primarily for short-term traders. Consider that gold miners' fortunes do not necessarily move in lockstep with gold, especially since many of the firms reflected here are also involved with markets for other metals as well. Although the price of the metal obviously has huge influence on profits and hence the share price of these companies, there is a host of other factors that come into play here: from the price of oil—which is the main input for any miner—to the size of the equity premium in the broad market. GDXX goes head-to-head with Direxion's very popular NUGT, which provides 3x leveraged exposure to the same index and has a similarly high annual fee. Of course, the expense ratio has minimal impact on the cost of holding these funds for a short period of time. For those investors, who will care more about trading costs, GDXX suffers in comparison to the ultra-liquid NUGT. GDXX does middling volume and trades with sizeable spreads, raising round-trip costs.
GDXX CHARTS AND PERFORMANCE
GDXX Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of GDXX. GDXX is rated a N/A out of 5.