Direxion Daily BA Bull 2X Shares (BOEU)

What this ETF is trying to do

The Direxion Daily BA Bull 2X Shares (BOEU) is an ETF designed to track the daily performance of Boeing Co (BA) shares with double (2X) the intensity. This means it is a leveraged fund that aims to provide twice the return of Boeing's stock price movements on any given day. Because it focuses on just one company and uses leverage, it is built for specific types of trading rather than general long-term investing.

What the numbers show

The data shows a significant share-price decline for this ETF recently. Over the last year, the one-year price return was approximately -41.77%. This means the share price dropped by about 42% in that timeframe. To put this into perspective, the estimated price from roughly one year ago was $41.82, while the current price is $24.35. The year-to-date (YTD) price return is also down by approximately -36.39%.

Income and distribution explanation

BOEU has a distribution yield of about 3.17%. It usually pays out distributions on a quarterly basis, with five payouts recorded over the last 12 months. While these payments provide cash to investors, it is important to remember that a distribution yield does not represent the total return. In this case, the supplied total-return data shows that even after including distributions, the one-year total return was approximately -40.37%. This indicates that the share-price decline was much larger than the amount paid out in distributions.

NAV erosion explanation

The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion. However, StockValueFinder has assigned this ETF an erosion-risk score of 10, which is labeled as "Severe price erosion." Additionally, the fund has a severe erosion-risk flag. This means that the screening rules detected substantial price deterioration and a very weak erosion score based on its history.

Pros

• Provides a way to double the daily gains of Boeing Co stock if the company's price goes up significantly in one day.

• Offers a direct way to focus on a single, well-known company.

Cons

• High risk due to being a leveraged ETF.

• Significant share-price decline over the last year (over 40%).

• Carries a severe erosion-risk flag and a high erosion-risk score of 10.

Beginner takeaway

BOEU is a high-risk tool designed to double the daily moves of Boeing stock. While it offers some distributions, the recent data shows a very large drop in share price and a severe erosion-risk warning. Investors should be aware that leveraged ETFs can experience rapid price changes.