SPXLDirexion Daily S&P 500 Bull 3x Shares
SPXL Fund Description
The Direxion Daily S&P 500 Bull 3x Shares provides daily leveraged exposure to the S&P 500, an index of mostly large-cap US equities.
SPXL Factset Analytics Insight
As a levered product, SPXL is not a buy-and-hold ETF; it's a short-term tactical instrument for getting 3x exposure to the S&P 500. SPXL gets the added exposure by using futures contracts and other derivatives. The underlying companies are among the biggest and most well-known in the world. Importantly, the implication of SPXL's daily rebalancing is that holding-period returns longer than a day are unlikely to resemble 3x exposure to the S&P 500. Shorter holding periods increase the importance of trading costs relative to yearly management costs, which are fairly high but average for this segment. Fortunately, SPXL trades with tight average spreads amidst ample daily volume.
SPXL CHARTS AND PERFORMANCE
SPXL Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of SPXL. SPXL 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.