What this ETF is trying to do

The DIREXION DAILY CSI 300 CHINA A SHARE BULL 2X SHARES (ticker: CHAU) is a leveraged ETF. Being "leveraged" means this fund aims to provide twice the daily performance of its target index. Because it is designed to move twice as much, it can go up or down much faster than a regular fund.

What the numbers show

The current price of one share is $19.34. The estimated price from roughly one year ago was $20.66.

To see how the share price has changed, we look at "price return." The one-year price return was approximately -6.39%. If you had invested $10,000 into this ETF based only on the share price a year ago, your investment would be worth about $9,361 today.

The year-to-date (YTD) price return is about -7.97%. However, when we look at "total return"—which includes both the share price change and cash distributions—the YTD total return is about -6.59%. Looking further back, the three-year total return was 30.87%, but the five-year total return was approximately -40.65%.

Top Holdings

The fund's largest reported holding is:

• XTRACKERS HARVEST CSI 300 CHINA A ETF (ASHR): 20.22%

Income and distribution explanation

This ETF has a distribution yield of 2.47%. This means the fund paid out cash distributions relative to its price. These payments usually happen every three months (quarterly). It is important to understand that a distribution yield is not the same as total return. A high yield does not mean you have earned that much in total profit.

NAV erosion explanation

The fund has an erosion-risk score of 75, which is labeled as "mild price erosion." "NAV erosion" refers to a decline in the value of the actual assets held within the ETF. This score is a measurement used to track this type of risk.

Pros

• The three-year total return has been positive at 30.87%.

• The fund provides regular cash distributions.

Cons

• It is a leveraged ETF, which can lead to much larger price swings.

• The five-year total return shows a significant decline of approximately -40.65%.

• Recent year-to-date returns for both price and total return have been negative.

Beginner takeaway

When looking at ETFs, always distinguish between "price return" (just the change in share price) and "total return" (the change in price plus any cash paid to you). Also, be aware that leveraged funds are designed to move with more intensity than standard investments.