PPLCPortfolioPlus S&P 500 ETF
PPLC Fund Description
PPLC provides 1.25x daily leveraged exposure to the S&P 500 Index.
PPLC Factset Analytics Insight
PPLC is part of a suite of ETFs from leveraged-products specialist Direxion Funds. Instead of the usual 2x or -2x exposures, PPLC provides 1.25x leveraged exposure to the S&P 500, rebalanced daily. In some respects, this makes PPLC akin to a broad US large-cap fund with an elevated 1.25 beta. PPLC was the first of its kind to provide fractional leveraged exposure to an index, allowing investors to take a slightly more conservative approach to leveraging their equity exposure. Still, investors should remember that PPLC rebalances its levered exposure daily, meaning that over the long haul, actual fund returns will deviate from 1.25x the market return due to compounding effects, for better or worse. Therefore, PPLC is still best used as a short-term tactical vehicle. Consistent with other leveraged products, the fund uses swaps to gain its targeted exposure. The expense ratio places PPLC among the cheapest within the leveraged suite of ETFs. Use caution trading the fund—carefully placed limit orders will help keep spreads in check.
PPLC CHARTS AND PERFORMANCE
PPLC Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of PPLC. PPLC is rated a N/A out of 5.